If both the real interest rate and the nominal interest rate are 3 percent, then the:
A. inflation premium is zero.
B. real GDP must exceed the nominal GDP.
C. nominal GDP must exceed the real GDP.
D. inflation premium also is 3 percent.
A. inflation premium is zero.
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The quantity theory of money was derived from the quantity equation by asserting that
A) real output was fixed. B) the money supply was fixed. C) the velocity of money was zero. D) the velocity of money was fixed.
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
A) When the amount of revenue generated by each member of the cartel is the same. B) When there are no economies of scale in production. C) When each member of the cartel is using the same scale of production. D) When marginal costs of production are the same for each of the members of the cartel.
A combination of two goods which lies beyond the production possibilities curve indicates: a. underutilization of resources
b. overutilization of resources. c. constant opportunity costs. d. a combination that cannot be produced with existing resources. e. society's most preferred combination of two goods.
A long term partnership between companies to jointly develop produce or sell products
What will be an ideal response?