The relationship between real and nominal interest rates can be expressed by:
A. real interest rate = nominal interest rate ? inflation.
B. real interest rate = nominal interest rate + inflation.
C. The real interest rate cannot be calculated.
D. real interest rate = inflation ? nominal interest rate.
Answer: A
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The Laffer curve illustrates that
A) high tax rates could lead to lower tax revenues if economic activity is severely discouraged. B) lowering tax rates will always decrease tax revenues. C) lowering tax rates will always increase tax revenues. D) high tax rates would increase tax revenue and increase the labor supply as people work harder to maintain their standard of living.
A nation can accelerate economic growth by increasing its production of consumer goods
a. True b. False Indicate whether the statement is true or false
How can firms survive in the long run if mandatory retirement is illegal and if firms are stuck with older workers whose productivity might technically have fallen over time?
What will be an ideal response?
Scarcity refers to a situation in which unlimited wants exceed the limited resources available to fulfill those wants
Indicate whether the statement is true or false