If the nominal interest rate is 2 percent and the inflation rate is 4 percent, then the real rate of interest is
A) -2 percent. B) 2 percent. C) 3 percent. D) 6 percent.
A
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An increase in the demand for labor means that
A) the demand for labor increases as a result of an increase in the real wage rate. B) the demand for labor increases at any real wage rate. C) the supply of labor must also be increasing. D) the demand for labor increases as a result of a decrease in the real wage rate.
A credit union is
A) a combination of credit card corporations. B) a depository institution owned by a social or economic group. C) a thrift institution that issues credit cards. D) a commercial bank owned by its depositors.
A U.S. international corporation will produce in other countries if costs are lower there
Indicate whether the statement is true or false
If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in
A) a price of zero. B) an increase in price. C) a decrease in price. D) no change in price.