The fome controls the real interest rate:
A. only on an annual basis.
B. if inflation doesn't change quickly.
C. only if it adjusts the federal funds rate to match the changes in the rate of inflation.
D. if inflation changes quickly.
Answer: B
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In Western nations, the desire for the incredible fruits of the materialist world may often
a. lead to very low opportunity costs of foreign aid b. lead to low birth rates and high death rates c. lead to an abandonment of the LDCs d. come at the expense of tradition e. lead to very high opportunity costs of innovation
________: a finite quantity of resources that is available to meet society's needs
Fill in the blank(s) with correct word
Imperfect information on the part of buyers and sellers
A. cannot persist in a market economy. B. is no longer a problem because the "truth-in-advertising" regulations have been instituted. C. will not stop the economy from achieving market efficiency, assuming the other conditions for market efficiency hold. D. remains a barrier to achieving market efficiency, at least in some industries.
If taxes are $2,000 when income is $15,000 and they are $3,000 when income is $19,000, then the marginal tax rate is:
A. 20 percent B. 25 percent C. 30 percent D. 40 percent