Suppose that you borrow $10,000 for one year, and at the end of the year, you must repay $10,450. Also, during that year inflation was 2.5%. The real interest rate is
A. 12.0 percent.
B. 7.0 percent.
C. 2.0 percent.
D. 4.5 percent.
Answer: C
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Okun's law states that for every 1-percentage-point increase in the cyclical unemployment rate, real GDP growth
A) must increase by 1 percentage point for the economy to keep from experiencing a recession. B) decreases by about 2 percentage points. C) declines for 1 year. D) increases by 1 percentage point.
Labor unions ________ increases in the minimum wage because an increase in the minimum wage ________ the demand for union labor
A) support; increases B) support; decreases C) oppose; increases D) oppose; decreases E) support; has no effect on
Many tax-funded programs are intended to:
A. decrease surplus. B. increase income inequality. C. provide basic human needs. D. fail due to underfunding.
The principle that people should pay taxes based on the benefits they receive from government services is called the
a. pay principle. b. tax-benefit principle. c. government services principle. d. benefits principle.