Calculate the real interest rate if the nominal interest rate is 8%, the expected inflation rate is 4%, and the inflation rate is 5%.
What will be an ideal response?
Real interest rate = nominal interest rate minus inflation rate = 8% - 5% = 3%.
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According to the above figure, the market clearing wage rate is
A) We. B) Wm. C) We - Wm. D) Wm + We.
For developing countries, one of the dangers inherent in the inflows of capital that finance investment is
a. increasing unemployment that accompanies foreign investment. b. rapid outflows of funds that put pressure on exchange rates. c. the deflation that accompanies inflows of foreign capital. d. the inflation that accompanies outflows of foreign capital.
Ellie has been working for an engineering firm and earning an annual salary of $80,000 . She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of
deposit on which she was earning annual interest of $500 . According to Ellie's accountant, which of the following revenue totals will yield her business $50,000 in profits? a. $55,200 b. $105,200 c. $132,500 d. $185,700
Which of the following statements is false?
A) A theory should be judged based upon whether or not it tells us the things we want to hear. B) Scientists are interested in finding out when their theories are wrong or right. C) Scientists are interested in building theories that can be refuted. D) If evidence is consistent with a theory's predictions, we state that the evidence fails to reject the theory.