If the rate of inflation is 5 percent and the real interest rate is 3 percent, the nominal interest rate should be
A) 1 percent.
B) 2 percent.
C) 8 percent.
D) -2 percent.
C
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The purchase and sale of government securities by the Fed is called ________.
A. money market transactions B. federal funds market C. open market operations D. term auction facility
Babysitting services the oldest son provides his parents
A) does not count as real GDP nor nominal GDP. B) counts as real GDP and nominal GDP. C) counts in both real and nominal GDP only if the son is not paid. D) counts as real GDP but not nominal GDP. E) counts as nominal GDP but not real GDP.
In the figure above, if no one owns the lake, at the equilibrium quantity what is the marginal social cost of producing the pesticide?
A) $80 B) $40 C) $60 D) $30
Consumer equilibrium requires that the marginal utility per dollar spent be unequal for all goods
a. True b. False Indicate whether the statement is true or false