The consumer price index was 225 in 2006 and 236 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?
a. 1.6 percent
b. 4.9 percent
c. 6.82 percent
d. 11.4 percent
a. 1.6 percent
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The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Aggregate planned expenditure is less than actual expenditure if real GDP is
A) less than $700 billion. B) more than $800 billion. C) $800 billion. D) less than $800 billion. E) more than $700 billion.
The attainable production points on a production possibilities curve are
A) the horizontal and vertical intercepts. B) the points outside the area enclosed by the production possibilities frontier. C) the points along the production possibilities frontier. D) the points along and inside the production possibility frontier.
Eliminating economic profit of a natural monopolist may be justifiable on the basis of society's equity goal.
Answer the following statement true (T) or false (F)
The price of a good that prevails in a world market is called the
a. absolute price. b. relative price. c. comparative price. d. world price.