A positive real interest rate indicates
a. how fast the number of dollars in your savings account is rising over time.
b. how fast the purchasing power of your savings account is rising over time.
c. the number of dollars in your savings account today.
d. the purchasing power of your savings account today.
B
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Economic losses are a signal to producers
A. That consumer demand is being satisfied. B. That they are not using resources in the best way. C. That consumers are content with the allocation of resources. D. That they are using resources in the most efficient way.
According to interest rate parity, if the interest rate is 1 percent in the European Union and the euro is expected to appreciate 3 percent, the comparable interest rate in the United States will be
A) 4 percent. B) 3 percent. C) 2 percent. D) 1 percent.
Which of the following is true of a beneficial supply shock? a. It can lead to a temporary lower price level
b. It can create a recessionary gap. c. It can permanently decrease the economy's price level. d. It can shift the aggregate demand curve rightward. e. It can shift the aggregate demand curve leftward.
Who among the following is most likely to favor an appreciation of the U.S. dollar?
a. a German professor visiting Chicago b. an American farmer who depends on exports c. an American professor on a tour of Austrian universities d. Disney World in Orlando, Florida, a popular destination for foreign tourists