The stated interest rate on a loan is the
A) nominal interest rate. B) real interest rate.
C) actual inflation rate. D) expected inflation rate.
A
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Which of the following statements best describes the study of economics? Economics studies how
A) to organize production so that scarcity does not occur. B) firms make profits. C) we make choices in the face of scarcity. D) to create incentives so that scarcity does not exist. E) businesses reach decisions.
Fluctuations in the relative demand for stock market mutual funds versus money-market mutual funds causes instability in the overall demand for
A) M1 but not M2. B) M2 but not M1. C) M2 and M1. D) neither M1 nor M2.
A shift in a curve represents a change in:
a. the variable on the horizontal axis. b. the variable on the vertical axis. c. a third variable that is not on either axis. d. any variable that is relevant to the relationship being graphed.
The Federal Reserve was founded by Congress in 1913 in response to
A. a request by President Franklin D. Roosevelt. B. a financial panic in 1907. C. the Great Depression. D. the first World War.