If the nominal interest rate is 5.6 percent and the rate of inflation is 7.1 percent in a given year, then what is the corresponding real rate of return?
A) 12 .7 percent
B) 1.5 percent
C) -1.5 percent
D) -12.7 percent
C
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In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that:
A) marginal cost is less than average total cost. B) average total cost is positive and constant. C) average total cost equals marginal cost. D) A and B are correct. E) B and C are correct.
A sudden decrease in consumers' wealth-resulting, for example, from a stock market crash-would initially cause a(n)
a. downward movement along the consumption function. b. downward shift of the consumption function. c. upward movement along the consumption function. d. upward shift of the consumption function.
An accurate demand curve can be derived by examining the quantities of a good that are sold over time as the price varies.
Answer the following statement true (T) or false (F)
To change the rate of growth of the money supply, the Fed can do all but which one of the following?
A. Change the discount rate. B. Shift the demand for money curve by changing the interest rate. C. Engage in open market operations. D. Change the required reserve ratio.