People know that the inflation rate will increase from 3 percent to 5 percent. As a result
A) the nominal interest rate falls by 2 percentage points.
B) the nominal interest rate is constant.
C) the nominal interest rate rises by 2 percentage points.
D) the real interest rate rises by 2 percentage points.
C
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Differences in marginal revenue products among workers can help explain the presence of wage differentials
a. True b. False
Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?
a. M1 and M2 are both unchanged. b. M1 falls by $1,000 . and M2 rises by $1,000. c. M1 is unchanged, and M2 rises by $1,000. d. M1 falls by $1,000 . and M2 is unchanged.
Average fixed cost
a. increases as output increases. b. declines as output increases. c. is always zero. d. remains constant even if output increases. e. decreases and then increases as output increases.
Which of the following explains why flood control is a public good?
A. There are external benefits associated with its consumption. B. Flood control is paid for by taxpayers. C. It is not divisible and therefore cannot be kept from people who do not pay. D. The private sector usually produces flood control projects.