The real interest rate is
A. the nominal interest rate plus the GDP deflator.
B. the nominal interest rate minus the anticipated inflation rate.
C. the nominal interest rate plus a COLA.
D. the nominal interest rate plus the anticipated inflation rate.
Answer: B
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According to Figure 12.1, if the economy moves from point C to point A because of increased government spending, the amount of private spending crowded out is equal to the distance
A. BD. B. BC. C. AB. D. AC.
Which of the following countries had the highest average growth rate for per capita GDP from 2000 to 2009?
A. Burundi. B. Haiti. C. China. D. Canada.
When price = ATC = MC = MR,
A. economic profits are positive. B. economic profits are zero. C. economic profits are negative. D. opportunity costs are zero.
As the tax rate decreases, the absolute value of the tax multiplier
A. increases. B. does not change. C. decreases. D. could either increase or decrease depending on the value of the MPC.