If the real interest rate is 3% and the expected inflation rate is 6%, then the nominal interest rate is

If a firm facing a perfectly elastic demand curve raises its price,

a. it will still sell exactly the same amount of output as it did at the lower price b. it will lose some, but not all, of its sales c. its sales will decrease to zero d. its sales will increase e. it is impossible to predict what will happen to its sales

National income is calculated by subtracting ____ from GDP

a. depreciation. b. investment and net exports. c. Social Security insurance contributions and transfer payments. d. corporate and personal income taxes.