People expect an inflation rate of 5 percent and the real interest rate is positive. Consequently the nominal interest rate will be
A) more than 5 percent.
B) 5 percent.
C) less than 5 percent.
D) Without more information it is impossible to tell if the nominal interest rate will be more than, less than, or equal to 5 percent.
A
Economics
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In a perfectly competitive labor market, no individual firm's employment decision can affect the market wage because
a. union agreements prevent any firm from altering the wage rate b. each firm is ignorant of the market wage rate c. the demand for labor is a derived demand d. each firm hires a very small portion of the labor services available e. the wage rate is regulated by the government
Economics
A significant decline in real GDP is called a
a. recession. b. depression. c. peak. d. trough.
Economics