If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is
A) -3%.
B) 3%.
C) 6.67%.
D) 15%.
Answer: A
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The following table shows values of annual real GDP per capita over time. Use it to answer the next question.1810$1,5001860$2,1001910$3,9001960$18,0002010$43,600Between which years was the rate of growth in real GDP per capita the highest?
A. 1960 to 2010 B. 1860 to 1910 C. 1810 to 1860 D. 1910 to 1960
Which of the following is most liquid?
A) a share of stock B) a corporate bond C) a government bond D) a $100 bill
The government imposes a price ceiling on gasoline that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest
A. using rationing coupons that can be resold. B. using rationing on a first-come, first-served basis. C. using rationing coupons that cannot be resold. D. using rationing only on weekdays.
If the supply of labor in a purely competitive labor market increases, then the product:
A. Supply curve for a single employer will shift to the right B. Supply curve for a single employer will shift to the left C. Demand curve for a single employer will shift to the right D. Demand curve for a single employer will shift to the left