If nominal interest rates have a lower bound of zero and deflation occurs at 3% (i.e., the inflation rate equals -3%, then the lowest real interest rate possible is

Paul goes to Sportsmart to buy a new tennis racquet. He is willing to pay $200 for a new racquet, but buys one on sale for $125. Paul's consumer surplus from the purchase is

A) $325. B) $200. C) $125. D) $75.

About what percentage of the goods and services purchased by U.S. consumers, businesses, and governments in 2012 were produced by foreigners?

A) 5% B) 14% C) 18% D) 40%