Suppose the real interest rate in Brazil is 40 percent, actual inflation is 20 percent, and expected inflation is 20 percent. The nominal interest must then be:
A. 40 percent.
B. 80 percent.
C. 60 percent.
D. 20 percent.
Answer: C
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When two goods are related such that an increase in the price of one good decreases the quantity demanded of the other good, these goods are definitely
A) normal goods. B) luxury goods. C) complements. D) substitutes. E) inferior goods.
The production of a good or service by an authority that receives the most of its revenue from the government is referred to as
A) public provision. B) private subsidies. C) vouchers. D) copyrights. E) Coasian production.
Refer to Scenario 19-1. The value added of CANOES-R-US for each canoe equals
A) $1,200. B) $800. C) $500. D) $400.
Although Progresa/Oportunidades has been successful in Mexico, why might a similar program not work elsewhere?
What will be an ideal response?