By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later
During the year the CPI rose from 150 to 162, but he had thought the CPI would be at 159 by the end of the year. By Marks had expected the real interest rate to be ________, but it actually turned out to be ________. A) 8%; 1%
B) 6%; 3%
C) 3%; 1%
D) 1%; 3%
C
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Full employment is the level of unemployment that occurs
A) when everyone looking for a job has a job. B) when cyclical unemployment is zero. C) when frictional and structural unemployment are zero. D) when frictional, structural, and cyclical unemployment are zero. E) None of the above answers is correct.
Most spells of unemployment are short, and most unemployment observed at any given time is short-term
a. True b. False Indicate whether the statement is true or false
If the elasticity for computers at the current price is at 6.4, what would happen to total revenues if a computer manufacturer doubled its price?
(A) They would go up slightly. (B) They would double. (C) They would remain the same. (D) They would go down drastically.