If the nominal interest rate is 10 percent and the inflation rate is 3 percent, then the real interest rate equals:
A. 13 percent.
B. 10 percent.
C. 3 percent.
D. 7 percent.
Answer: D
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Figure 10-8
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Figure 10-8 describes which of the following periods in the United States?
A. 1930s B. 1973–1975 C. late 1990s D. 2007–2009
Refer to the above figures. Which of the panels would be consistent with the situation in which external benefits exist?
A) Panel 1 B) Panel 2 C) Panels 1 and 2 D) neither panel
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
People who buy foreign currency for the sole goal of selling it at a profit are called:
A. numismatists. B. currency hedgers. C. currency manipulators. D. currency speculators.