If the nominal interest rate is ________ and the inflation rate is ________, the real interest rate is positive
A) zero; positive B) negative; zero C) zero; negative D) negative; negative
C
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Which of the following is not one of the key services provided by the financial system?
A) risk sharing B) liquidity C) decreasing taxes D) generating information
When the economy begins to slip into a recession, the automatic stabilizers cause
A. transfer payments to increase and tax collections to decline. B. tax rates to increase so that tax revenues will remain relatively stable. C. interest rates to decline. D. a movement toward a budget surplus.
A depreciation is:
A. a decrease in the value of currency. B. a decrease in the trade deficit. C. an increase in the trade surplus. D. an increase in the value of currency.
Staggered price setting ________
A) leads to frequent price adjustments B) occurs when firms fail to consider the behavior of their competitors C) is generally illegal D) all of the above E) none of the above