Use the following two statements in answering this question: I. For all Giffen goods the substitution effect is larger than the income effect. II. For all inferior goods the substitution effect is larger than the income effect

Explain how the following will affect the supply curve of coffee

a) A fall in the wages paid to coffee workers b) An increase in the availability of high-yielding coffee plants c) A decrease in the quantity of land under coffee cultivation What will be an ideal response?

If the inflation rate is zero, the nominal interest rate is

A) greater than the real interest rate. B) positive and the real interest rate is negative. C) equal to the real interest rate. D) less than the real interest rate. E) equal to the inflation rate.