Complete the following table assuming that (a) MPS = 1/3, (b) there is no government and all saving is personal saving.

If the real interest rate is 7 percent when the nominal interest is 12 rate is percent, the inflation rate is

A) -5 percent. B) 5 percent. C) 19 percent. D) 1.7 percent. E) 7 percent.

Many disagreements among economists result because:

A) economists deal only with positive economics. B) economists sometimes make normative judgments. C) economics is a social science. D) economics deals so much with theories and models.