Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises. What is happening to the real rate of interest?
A) It is unchanged.
B) It is increasing.
C) It is decreasing.
D) It equals the nominal interest rate.
C
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According to the table, when converted to U.S. dollars, Big Macs cost approximately ________ percent less in the United States than they do in Switzerland
A) 36 B) 42 C) 58 D) 126
Which of the following explains why firms in competitive price-searcher and competitive price-taker markets will both have zero economic profits in the long run but a monopoly will not?
a. There is always more than one firm in competitive price-searcher and competitive price-taker markets. b. Both competitive price-searcher and competitive price-taker markets are characterized by firms producing identical goods, but a monopoly is not. c. In both competitive price-searcher and competitive price-taker markets, the barriers to entry are low; this is not true under a monopoly. d. A monopoly firm has a downward-sloping demand curve; firms in the other types of markets do not.
If Congress passes legislation to cut taxes and increase government spending to counter the effects of a severe recession, this would be an example of a(n):
a. Contractionary fiscal policy b. Expansionary fiscal policy c. Standardized budget d. Budget surplus
The influential book written by Adam Smith was:
A. The Wealth of Nations. B. The Age of the Economist. C. The Affluent Society. D. Capitalism and Freedom.