If the nominal interest rate is high and rising, a possible cause is
A. a rising inflation rate.
B. a falling real interest rates.
C. reduced government borrowing.
D. increased lending activity.
Answer: A
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If the total revenue collected by the federal government in a particular year is $1.2 billion and the total amount spent by the government during the same year is $3.8 billion, what is the budget deficit?
A) $1.6 billion B) $2.6 billion C) $2.2 billion D) $5 billion
Situations in which the assumption of efficient, competitive markets fails to hold are called:
A. market failures. B. inelastic-response markets. C. missing markets. D. market interventions.
A point outside the production possibilities frontier
a. represents unemployment of resources b. represents full employment of resources c. would not represent an efficient combination of goods d. cannot be reached using the available technology e. is less desirable than one that lies inside the frontier
According to the U.S. Bureau of Economic Analysis, by the third quarter of 2014, foreign investors had accumulated ________ of U.S. assets.
a. $30.8 billion b. $30.8 trillion c. $24.6 trillion d. $2.46 trillion