When deflation exists,
a. the real interest rate is less than the nominal interest rate.
b. the real interest rate is greater than the nominal interest rate.
c. the real interest rate and inflation are less than the nominal interest rate.
d. prices rise.
b
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Sonia has a BAin art history, and is currently working full-time as a waitress. The Bureau of Labor Statistics would count Sonia as:
A. employed. B. underemployed. C. unemployed. D. a discouraged worker.
Demand tends to be ________ in the short run than in the long run.
A. less important B. more elastic C. more variable D. less elastic
A Chinese company exchanges yuan (Chinese currency) for dollars. It uses these dollars to purchase scrap metal from a U.S. company. As a result of these transactions, Chinese
a. net exports increase, and U.S. net capital outflow increases. b. net exports increase, and U.S. net capital outflow decreases. c. net exports decrease, and U.S. net capital outflow increases. d. net exports decrease, and U.S. net capital outflow decreases.
A difference between the market and the public sector is that
A. government can use force, while the market does not. B. we can only vote in the public sector. C. scarcity exists only in the market sector. D. the cost of private goods to society is zero.