Initially the nominal interest rate is 8 percent and the inflation rate is 5 percent. People know that the inflation rate increases to 10 percent. What is the new nominal interest rate?
A) 8 percent
B) 3 percent
C) 13 percent
D) 11 percent
C
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When the price elasticity of demand for a good equals
A) 0, the demand curve is vertical. B) 0, the demand curve is horizontal. C) 1, the demand curve is vertical. D) 1, the demand curve is horizontal.
Which of the following is a term referring to unemployment that occurs because individuals lack skills valued by employers?
a. cyclical unemployment b. underemployment c. natural unemployment. d. structural unemployment
Suppose Smith pays $100 to Jones.
a) We can say with certainty that the GDP has increased by $100. b) We can say with certainty that the GDP has increased, but we cannot determine the amount. c) We can say with certainty that the nominal GDP has increased, but we can't say whether real GDP has increased or decreased. d) We need more information to determine whether GDP has changed.
The model: G(z) = 
, where 
(z) = (2
/>)-1/2exp(-z2/2) represents a: A. Tobit model. B. logit model. C. probit model. D. linear probability model.