If the nominal interest rate is 5 percent and the real interest rate is 7 percent, then the inflation rate is
a. -2 percent.
b. 0.4 percent.
c. 2 percent.
d. 12 percent.
a
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A "satisficer" is a person whose decision making is the same as that predicted by mainstream economic models
a. True b. False Indicate whether the statement is true or false
The total market value of production in an economy must equal total:
A. profits. B. spending on final goods and services. C. consumption. D. revenues from all transactions.
What is the length of the term of the members of the Board of Governors of the Federal Reserve System?
A. four years B. six years C. fourteen years D. life or until the member resigns
The level of GDP, all else held constant, will tend to increase when ________.
A. reserve requirements are increased B. there is an increase in the discount rate C. the federal funds rate is increased D. the Federal Reserve buys government securities in the open market