Suppose that over the past year, the real interest rate was 3 percent, the CPI was 126.2 at the beginning of the year, and the CPI was 129.5 at the end of the year. It follows that
a. the dollar value of savings increased at 5.6 percent, and the purchasing power of savings increased at 3 percent.
b. the dollar value of savings increased at 0.4 percent, and the purchasing power of savings increased at 3 percent.
c. the dollar value of savings increased at 3 percent, and the purchasing power of savings increased at 5.6 percent.
d. the dollar value of savings increased at 3 percent, and the purchasing power of savings increased at 0.4 percent.
a
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Using the above table, the marginal utility for the sixth glass of water is
A. -5 utils. B. 5 utils. C. 260 utils. D. 255 utils.
The IS curve has a positive slope because a(n) __________ in the interest rate leads to a(n) __________ in desired investment and this leads to a decrease in GDP
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Stagflation is defined as:
a. the simultaneous occurrence of high inflation and high unemployment. b. high inflation accompanied by falling interest rates. c. declining GDP accompanied by a stable price level. d. a persistent decline in the price level that is unresponsive to monetary and fiscal policies.
Perfectly competitive markets are characterized by:
a. a small number of very large producers. b. very strong barriers to entry and exit. c. firms selling a homogeneous product. d. all of these.