Which of the following combinations of real interest rates and inflation implies a nominal interest rate of 6 percent?
a. a real interest rate of 3 percent and an inflation rate of 2 percent.
b. a real interest rate of 7 percent and an inflation rate of 1 percent.
c. a real interest rate of 5 percent and an inflation rate of 1 percent.
d. a real interest rate of 6 percent and an inflation rate of 1 percent.
c
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If the dollar depreciates against the yen, U.S. goods sold in ________ would become less expensive and Japanese goods sold in ________ would become more expensive
A) the United States; the United States B) Japan; Japan C) the United States; Japan D) Japan; the United States
The essential logic behind international trade is not different from that underlying trade among different states. Why, then, do we study international trade as a special subject?
If you take $500 out of a savings deposit and put it into a checking account, the immediate effect (do not consider the money multiplier):
a. M1 rises, M2 remains the same, and the monetary base remains the same. b. M1 falls, M2 falls, and the monetary base remains the same. c. M1 rises, M2 rises, and the monetary base remains the same. d. M1, M2, and the monetary base fall. e. M1, M2, and the monetary base remain the same.
When there is a decrease in the price of a good,
A. the elasticity of demand will determine the degree to which quantity demanded falls. B. the elasticity of demand will determine the degree to which quantity demanded rises. C. the demand curve will shift to the right. D. the demand curve will shift to the left.