If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is

A) -3%. B) 3%. C) 6.67%. D) 15%.


A

Economics

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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower

Economics

In a closed economy, without the government:

A) savings equals net exports. B) consumption equals investment. C) consumption equals savings. D) savings equals investment.

Economics

The equation Y = A is known as the ________

A) Cobb-Douglas production function B) labor supply curve C) marginal product of labor D) capital-to-employment function

Economics

What is the principal difference between a U-form and an M-form organization?

Economics