Assume that in an all-currency economy the real interest rate is 4%, the expected rate of inflation is 8%, and the nominal interest rate is 12%. The monetary base equals $50 billion
The real seignorage revenue collected by the government would equal A) $4 billion.
B) $6 billion.
C) $8 billion.
D) $12 billion.
A
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A household increases its wealth by
A) increasing its capital consumption. B) making sure that its net investment exceeds its gross investment. C) saving. D) spending more on consumption goods. E) decreasing its depreciation.
The major economic cost of growth is:
A. consumption sacrificed for capital formation. B. higher interest rates. C. higher inflation rates. D. investment in stocks and bonds.
Economic growth is best defined as an increase in:
A. either real GDP or real GDP per capita. B. nominal GDP. C. total consumption expenditures. D. wealth in the economy.
Refer to the information provided in Table 13.3 below to answer the question(s) that follow. Table 13.3Price ($)Quantity4.001003.502003.003002.504002.005001.506001.00700Refer to Table 13.3. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the societal loss associated with the monopoly?
A. $0 B. $225 C. $450 D. Indeterminate from the given information.