A. none of these answers
B. The nominal interest rate is the inflation rate minus the real interest rate
C. The real interest rate is the nominal interest rate minus the inflation rate
D. The nominal interest rate is the real interest rate minus the inflation rate.
Related Mcqs:
- Which of the following statements is correct ?
A. If the current accounts is in surplus then the capital account must also be in surplus
B. If the current account is in deficit then the capital account must also be in deficit
C. The overall sum of all the entries in the balance of payments must be positive
D. The overall sum of all entries in the balance of payments must be zero - Which of the following statements about the burden of a tax is correct ?
A. The tax burden generated from a tax placed on a good consumer perceive to be a necessity will fall most heavily on the sellers of the good
B. The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected
C. The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
D. The tax burden falls most heavily on the side of the market (buyers and sellers) that is most willing to leave the market when price movements are unfavorable to them. - Which of the following statements regarding taxes is correct ?
A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes. - Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?
A. Is vertical because an equal change in all prices and wages leaves output unaffected
B. is positively sloped because price expectations and wages tend to be fixed is the long run
C. shifts right when the government raises the minimum wage
D. shifts left when the natural rate of unemployment falls - Which of the following statements is true ?
A. Long-term bonds tend to pay less interest than short-term bonds
B. Government bonds pay less interest than comparable corporate bounds
C. Investment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund
D. A stock index is a directory used to locate information about selected stocks. - Which of the following statements best describes the outcome under monopolistic competition ?
A. It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost
B. It is efficient because entry is free and economic profits are eliminated in the long run.
C. It is not efficient because too little output is produced and the output that is produced is produced at a cost above minimum average total cost
D. It is not efficient because too little output is produced but is efficient in that the output produced is produced at minimum average total cost. - Which of the following statements about a binding price ceiling is true ?
A. The shortage created by the price ceiling is greater in the short ran than in the long run.
B. The surplus created by the price ceiling is greater in the short run than in the long run
C. The surplus created by the price ceiling is greater in the long run than in the short run
D. The shortage created by the price ceiling is greater in the long run than in the short run - Which of the following statements about stabilization policy is not true ?
A. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
B. None of these answers are true
C. Long lags enhance the ability of policy makers to fine tune the economy
D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect - Which of the following statements regarding discrimination is true ?
A. The existence of a wage differential among groups is strong evidence of discrimination in the labour market
B. Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination
C. Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market
D. Discrimination cannot exist in a competitive labor market - Which of the following statements is normative ?
A. Large government deficits cause an economy to grow more slowly
B. People work harder if the wage is higher
C. The unemployment rate should be lower
D. Printing too much money causes inflation
