Assuming all else equal, the ________, the lower the nominal interest rate
A) lower the inflation rate B) higher the inflation rate
C) lower the income tax rates D) higher the income tax rates
A
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In a market system, which component conveys information about what is relatively scarce and what is relatively abundant?
A) the number of producers B) the number of consumers C) market price D) the amount of resources used in producing the goods and services
At long-run equilibrium inflation ________ and output equals ________.
A. equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate B. is stable; potential C. equals the value consistent with potential output; the level of output consistent with zero inflation D. equals the value determined by past expectations and pricing decisions; potential