The difference between the nominal rate of interest and the real rate of interest is
A) handling charges.
B) government regulatory charges.
C) administrative overhead charges.
D) the anticipated rate of inflation.
D
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Which of the following is NOT included in the money supply when the transactions approach is used?
A) currency B) traveler's checks C) money market deposit accounts D) transaction deposits
Economic growth can be measured by:
a) The CPI b) The CBI c) GDP d) MPC
Economist Douglass North's definition of institutions:
A. includes laws enforced by the government as well as cultural norms. B. is the humanly devised constraints that shape human interactions. C. is the rules of the game in a society. D. All of these statements are true.
Refer to the graph. The economy begins at a level of output of $20 billion and experiences a one year recession in which output declines by 4 percent. By what rate per year must the economy expand, after it has reached its trough, to return to its potential output by year 3?
A. About 8 percent B. About 5 percent C. About 10 percent D. About 3 percent