Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:
A. increased by 1.67 percent.
B. increased by 2 percent.
C. increased by 8 percent.
D. decreased by 0.6 percent.
Answer: B
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The steeply upward sloping yield curve in the figure above indicates that ________ interest rates are expected to ________ in the future
A) short-term; rise B) short-term; fall moderately C) short-term; remain unchanged D) long-term; fall moderately
The federal funds market is the market in which:
a. banks borrow from the Fed. b. bank customers borrow from their banks c. banks borrow from each other. d. the federal government borrows from the Fed. e. the federal government borrows from members of the general public.
If aggregate supply rises sharply so that a recession occurs, then the prescription is for expansionary fiscal policy
Select whether the statement is true or false. A. True B. False
If Guy Lafleur is taxed $100 on an income of $1,000 . Patrick Roy is taxed $200 on an income of $2,000 . and Ryan Walter is taxed $300 on an income of $3,000 . the tax system is
a. progressive b. poll c. regressive d. excise e. proportional