A rightward shift of the supply of loanable funds curve leads to a lower equilibrium interest rate
a. True
b. False
Indicate whether the statement is true or false
True
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If the nominal interest rate is 8 percent and inflation is 3 percent, approximately what is the real interest rate?
A) 11 percent B) 8 percent C) 5 percent D) 3 percent
Which of the following is not considered a rationale for the intervention of government in the market process in the United States?
A) the redistribution of income B) the reallocation of resources C) the long-run planning of scarce resources D) the short-run stabilization of prices E) All of the above
An important difference between the GDP deflator and the consumer price index is that
a. the GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers. b. the GDP deflator reflects the prices of all final goods and services produced domestically, whereas the consumer price index reflects the prices of goods and services bought by consumers. c. the GDP deflator reflects the prices of all final goods and services produced by a nation's citizens, whereas the consumer price index reflects the prices of all final goods and services bought by consumers. d. the GDP deflator reflects the prices of all final goods and services bought by producers and consumers, whereas the consumer price index reflects the prices of all final goods and services bought by consumers.
At the point where the consumption schedule intersects the 45-degree line:
A. the MPC equals 1. B. the APC is zero. C. saving equals income. D. saving is zero.