If the nominal interest rate on a one-year loan was 7%, the actual inflation rate over the year was 3% and the expected inflation rate over the year was 2.5%, then the expected real interest rate equals
A) 4.5%.
B) 4.0%.
C) 3.75%.
D) 3.5%.
A
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A foreign exchange intervention with an offsetting open market operation that leaves the monetary base unchanged is called
A) an unsterilized foreign exchange intervention. B) a sterilized foreign exchange intervention. C) an exchange rate feedback rule. D) a money neutral foreign exchange intervention.
Which program provides assistance to the aged, blind and disabled?
A) Social Security Program B) Supplemental Security Income program C) TANF D) Earned Income Tax Credit
The Laffer curve belongs to which of the following schools of economic thought?
a. Keynesian. b. Supply-side. c. Demand management. d. Classical.
If Levi Strauss & Co were to require every retailer that carried its clothing to charge customers $42 for each pair of jeans, Levi Strauss & Co would be practicing
a. resale price maintenance. b. fixed retail pricing. c. tying. d. cost plus pricing.