When the anticipated rate of inflation is 5 percent and the real rate of interest is 4 percent, the nominal rate of interest is
A) 1 percent.
B) 4 percent.
C) 5 percent.
D) 9 percent.
D
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A cost not borne by the producer but borne by other people is known as ________ cost
A) a marginal B) an internal C) an external D) a nonessential E) a subsidized
In the past the federal government often employed what is called a "command-and-control" approach to the reduction of pollution emissions. Many economists are critical of this approach because
A) they believe a market-based approach will reduce pollution more efficiently. B) it does not lead to significant reductions in pollution. C) the "command-and-control" approach leads to negative externalities. D) the "command-and-control" approach is designed to help firms at the expense of consumers.
National saving minus investment equals the current account
Indicate whether the statement is true or false
An advantage of public works over transfer payments as a means of reducing unemployment is that
a. public works provide more direct aid to those suffering most from unemployment. b. transfer payments are unlikely to decrease unintended excess inventories of consumer goods. c. public works require using a large amount of capital goods and producing a large amount of supplies. d. All of these.