Considering the data on real and nominal interest rates for the U.S. from 1979 to 2012, which of the following statements is most accurate?
A. The real interest rate remains unchanged over time.
B. The inflation rate is always greater than the real interest rate.
C. There have been times when the real interest rate has been negative.
D. Nominal interest rates higher in 2000 than they had been at any other point in time.
Answer: C
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The efficient level of pollution abatement is greater
a. The higher the marginal social benefit of abatement function and the higher the marginal social benefit of abatement function. b. The higher the marginal social benefit of abatement function and the lower the marginal social benefit of abatement function. c. The lower the marginal social benefit of abatement function and the higher the marginal social benefit of abatement function. d. The lower the marginal social benefit of abatement function and the lower the marginal social benefit of abatement function.
The long-run growth framework focuses on factors affecting:
A. the business cycle. B. incentives to spend. C. both supply and demand. D. incentives to produce.
PXX + PYY = M is called:
A. an indifference curve. B. a budget set. C. a budget line. D. an opportunity set.
Crowding out occurs when the federal government:
A. raises taxes to finance a budget deficit. B. refinances maturing U.S. Treasury bonds. C. borrows by selling bonds to finance a deficit. D. uses a budget surplus to pay off part of the national debt.