In order to calculate the real interest rate, simply:
A. add the rate of inflation to the nominal interest rate.
B. subtract the rate of inflation from the nominal interest rate.
C. subtract the nominal interest rate from the rate of inflation.
D. divide the nominal interest earned by the rate of inflation.
B. subtract the rate of inflation from the nominal interest rate.
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A rightward shift of a supply curve
a. represents a decrease in supply b. might be caused by an increase in demand c. might be caused by a price ceiling d. would cause an excess quantity supplied at the previous equilibrium price e. might be caused by a decrease in demand
If the elasticity of supply of a good was 2, how much would the price have to increase to lead to an increase in output of 6 percent? a. 3 percent
b. 4 percent. c. 8 percent. d. 12 percent.
On the vertical axis, the Phillips curve depicts the
A. the rate of unemployment. B. rate of inflation. C. rate of growth of nominal GDP. D. rate of growth of real GDP.
Which of the following statements is true?
A) All individuals in both countries are made better off as a result of international trade. B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. C) Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. D) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off.