If the inflation rate is 2% and the nominal interest rate is 1%, then the real interest rate is around
A. 2%.
B. 3%.
C. 1%.
D. -1%.
Answer: D
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
People over the age 16 with full-time jobs are considered to be
A) in the labor force and employed. B) unemployed. C) in the labor force unemployed. D) in the working-age population only because they have full-time jobs. E) not in the labor force.
Incorporated firms first began appearing in the 1850s
Indicate whether the statement is true or false
Assume that a cargo ship carrying the merchandise of a cloth merchant has been wrecked. Such a setback will be accounted as the merchant's:
a. sunk cost. b. deadweight loss. c. marginal cost. d. opportunity cost.