If the real rate of interest is negative, then, ceteris paribus,
A. The nominal interest rate is less than the anticipated inflation rate.
B. Monetary policy is tight.
C. The inflation rate is negative.
D. The nominal interest rate is negative.
Answer: A
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When the average product of labor is greater than the marginal product of labor
A) the marginal product of labor must be increasing as labor increases. B) there must be increasing marginal returns. C) the average product of labor is decreasing as labor increases. D) None of the above answers is correct
A country's index of openness can never exceed 100 in value
Indicate whether the statement is true or false
If income falls below its potential and the income tax rate is reduced, this will:
A. raise the cyclical deficit but reduce the structural deficit. B. reduce the cyclical deficit but raise the structural deficit. C. reduce both the cyclical and structural deficits. D. raise both the cyclical and structural deficits.
A nation can increase its production possibilities by:
A. shifting resources from investment good production to consumer good production. B. shifting resources from private goods to public goods. C. reducing international trade. D. improving labor productivity.