Holding the nominal interest rate constant, a ________ in the expected rate of inflation tends to ________ the real interest rate
A) rise; increase.
B) fall, decrease.
C) fall; increase.
D) rise; improve.
C
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Do people's incomes result from the choices they make?
A) Yes, and from no constraints whatsoever. B) Yes, but from among a limited set of options. C) No, because obviously no one would choose to be poor. D) No, because others often will not let people have what they choose.
The net amount of international reserves that move between governments to finance international transactions is called the ________ balance
A) capital account B) current account C) trade D) official reserve transactions
Given the scenario described, if the market price of hammers decreased from $17 to $12:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. producer participation in the market would increase. B. producer participation in the market would decrease. C. producer participation in the market would not be affected. D. total producer surplus would remain unchanged.
Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?
a. Demand has increased b. Demand has decreased c. Supply has increased d. Supply has decreased e. Quantity supplied has decreased