If a financial institution extends a 25 year loan at a 6 percent interest rate, and then the inflation rate increases suddenly and unexpectedly to 6 percent per year, the institution receives on its loan a real return of

The above figure shows the U.S. market for 1 carat diamonds. Suppose the United States imposes the import quota shown in the figure. With the import quota, how many diamonds can be imported?

A) 500,000 B) 700,000 C) 400,000 D) 900,000 E) 300,000

Demonstrate how a permanent fiscal expansion will not increase output in the long run

What will be an ideal response?