Which of the following equations is accurate?
a. money interest rate = real interest rate - inflationary premium
b. real interest rate = money interest rate + inflationary premium
c. real interest rate = money interest rate - inflationary premium
d. real interest rate = money interest rate
C
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Pick the economic variable that is countercyclical
a. Investment b. Government transfer payments c. Prices d. Consumption e. Nominal interest rates
When government agencies become privatized:
A. stock is created and sold to the public. B. private stock is sold to private households. C. they are sold to private companies. D. they are rarely regulated.
China began pegging its currency, the yuan, to the U.S. dollar in 1994. Because the yuan has been ________ at the pegged exchange rate, the Chinese government ________ its reserves of U.S. dollars as the government purchased more ________ to maintain the pegged exchange rate.
A) undervalued; increased; dollars B) undervalued; decreased; yuan C) overvalued; decreased; yuan D) overvalued; increased; yuan
Related to the Economics in Practice on p. 26: One reason for the increase in sales of frozen foods from $1 billion in 1950 to $53 billion in 2016 is the
A. increased opportunity cost of cooking frozen meals. B. decrease in popularity of the microwave oven. C. increased opportunity cost of preparing home-cooked meals. D. decrease in the number of women in the labor force.