If the nominal interest rate is 5 percent and there is a deflation rate of 3 percent, what is the real interest rate?
a. 8 percent
b. 2 percent
c. 15 percent
d. 1.7 percent
a
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Refer to Table 18.1. M1 in this simple economy equals
A) $500. B) $550. C) $1,050. D) $4,550.
The table above shows Randy's Shirts' short-run production function. Randy hires workers at a wage rate of $50 a day and his total fixed cost is $100
a) What is the marginal product of the 3rd worker? b) What is Randy's average fixed cost if 48 shirts are produced? c) What is Randy's average variable cost if 56 shirts are produced? d) What is Randy's marginal cost of producing the 52nd sweater? e) What is Randy's average total cost if 48 sweaters are produced?
From uncovered interest parity, we know that when the domestic currency is expected to depreciate, the domestic interest rate should be:
a. greater than the foreign interest rate. b. greater than the foreign exchange rate. c. less than the foreign interest rate. d. less than the foreign exchange rate.
Exhibit 6-1 Business cycle
In Exhibit 6-1, point E represents:
A. recession and a trough. B. peak and a trough. C. recession and a peak. D. recovery and a peak.