The table below shows data for the U.S
Nominal Interest Rate Inflation Rate
2013 5.25 4
2014 5 2
2015 4.5 4.3
Between 2014 and 2015 the real interest rate ________ and caused a ________ the demand for loanable funds curve.
A) increased; rightward shift
B) decreased; movement down along
C) increased; movement up along
D) decreased; leftward shift
B
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A decrease in labor costs will cause aggregate ________.
A. demand to decrease B. supply to decrease C. supply to increase D. demand to increase
What are the proximate causes of prosperity? How are they related to the fundamental causes of prosperity?
What will be an ideal response?
A monopoly sells 5 units of output at $20. If the MR of the 6th unit is $14, then the price of the 6th unit is
A. greater than $20. B. $19. C. also $14. D. $17.
If the tax-returns and capital gains effect were accounted for in the measurement of income inequality, ________.
A. the top 1% share of income would have decreased by 1.4% from 1978 to 2007 B. the top 1% share of income would have tripled from 1978 to 2007 C. the top 1% share of income would have remained at 8% in 1978 and 2007 D. the top 1% share of income would have less than doubled in value from 1978 to 2007