Which if the following does not affect the nominal interest rate?
a. The real interest rate.
b. The current inflation rate.
c. Society's time value of money.
d. The amount of government borrowing.
e. The expected inflation rate.
.B
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Long-run aggregate supply curve in the classical model
A) is a downward sloping line. B) is the level of real GDP corresponding to 100 percent labor force participation. C) is the level of real GDP corresponding to the natural rate of unemployment. D) is determined by the capital stock of the economy, not the labor force.
The leadership of the Federal Reserve System is provided by
A) the Board of Governors. B) the Federal Advisory Committee. C) the Federal Open Market Committee. D) the directors of the twelve Federal Reserve banks.
An individual who suffers from money illusion will
A) feel that a doubling of prices and income improves his economic position. B) concentrate on relative prices. C) never be fooled by the impact of price changes on the purchasing power of income. D) try to use counterfeit money.
If you have already signed up for a plan with your cell phone company that gives you 4,000 free minutes for $39.99 per month with a cost of $0.35 per minute for any time exceeding the limit, your marginal cost curve is:
A. horizontal at a marginal cost of zero up to 4,000 minutes. B. horizontal at a marginal cost of zero. C. upward-sloping. D. horizontal at a marginal cost of $0.35.