Suppose the nominal interest rate in Brazil is 40 percent and the expected inflation rate is 150 percent. The real interest rate is:
A. 1-90 percent.
B. 190 percent.
C. 1-10 percent.
D. 110 percent.
Answer: C
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A new discovery of large volumes of previously unknown deposits of natural gas in Pennsylvania would
A) shift only the short-run aggregate supply curve to the right. B) shift only the long-run aggregate supply curve to the right. C) not affect either the short-run or long-run aggregate supply curves. D) shift the short-run and long-run aggregate supply curves to the right.
Under the Bretton Woods system, a fixed exchange rate supported by central banks was known as a(n) ________ exchange rate
A) equilibrium B) par C) fundamental D) target
If a person can make $70,000 as an accountant, $60,000 as a chef, $20,000 as a mechanic, and nothing as an opera singer, he or she has a comparative advantage in
A) accounting. B) being a chef. C) being a mechanic. D) opera singing.
Graphically, a decrease in advertising will cause the demand curve to:
A. shift rightward. B. become steeper. C. become flatter. D. shift leftward.