Recent research by Fed researchers put the natural rate of interest at:
A. five percent.
B. two percent.
C. negative one percent.
D. close to 0 percent.
Answer: D
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If inflation causes the absolute prices of all commodities to double, then the relative prices
a. will also double. b. will be halved. c. will be unchanged. d. may rise, fall, or remain unchanged.
A Gini of 0 implies that:
a. every family has an equal amount of income. b. the top 10% of the families appropriate almost 100% of the total income. c. the bottom 90% of the families have only 10% of the total income. d. the bottom 20% of the families have 80% of the total income. e. only 1 family appropriates the entire national income.
A subsidy is defined as
a. a payment that must be made to the government whenever a good or service is sold. b. the number of trades that are eliminated from a market when a tax is imposed. c. the difference between total revenue and total cost for a business firm. d. a payment to either the buyer or seller of a good or service, usually on a per-unit basis, when a good or service is purchased.
In product markets:
A. businesses sell resources to households. B. households sell products to business firms. C. businesses sell goods and services to households. D. households sell resources to business firms.