If the Fed decreases the nominal interest rate by 2 percent, how will the real interest rate change in the short run?
a. It will decrease by 1 percent.
b. It will decrease by 2 percent.
c. It will increase by 1 percent.
d. It will increase by 2 percent.
b. It will decrease by 2 percent.
You might also like to view...
On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced
Between these points, what is the opportunity cost of producing a pound of apples? A) 2 pounds of bananas B) 5/12 of a pound of bananas C) 0.5 of a pound of bananas D) 2 pounds of apples E) 100 pounds of bananas
Tariff revenues are an important generator of revenue in less-developed countries
a. True b. False
Which of the following best illustrates the concept of a store of value?
a. You are a precious-metals dealer, and you are always aware of how many ounces of platinum trade for an ounce of gold. b. You sell items on eBay, and your prices are stated in terms of dollars. c. You keep 6 ounces of gold in your safe-deposit box at the bank for emergencies. d. None of the above is correct.
Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows:
a. Firm A: 30% b. Firm B: 20% c. Firms C, D, and E: 10% each d. Firms F, G, H, and J: 5% each What is the value of the four-firm concentration ratio and how is the industry categorized? A) 50%; monopolistic competition B) 70%; oligopoly C) 75%; oligopoly D) 80%; strongly oligopolistic