Nominal interest rates tend to be higher in countries with

A) higher rates of inflation.
B) lower rates of inflation.
C) lower real interest rates.
D) Both B and C.


A

Economics

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"The distribution of income should be determined by the government" is an example of a positive economic statement

Indicate whether the statement is true or false

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Refer to the above figure. The point at which saving equals zero is

A) only at point A. B) to the left of point B. C) only at point B. D) to the right of point B.

Economics

As output rises, marginal product eventually diminishes and

a. marginal cost increases. b. total cost falls. c. fixed cost increases. d. average product becomes negative.

Economics

According to traditional Keynesian analysis, if the economy is in a recession, the government can move it back towards full employment by

a. cutting taxes and increasing expenditures. The effect of the tax cut is larger. b. cutting taxes and increasing expenditures. The effect of the tax cut is smaller. c. raising taxes and decreasing expenditures. The effect of the tax increase is larger. d. raising taxes and decreasing expenditures. The effect of the tax increase is smaller.

Economics