If savers require a 2% return and inflation is expected to be 3%, what approximate rate will banks offer savers?

Which of the following is NOT a component of private investment, for purposes of GDP accounting?

A. newly produced housing B. additions to firms' stock of inventories C. purchases by firms of used machinery D. newly built factories

Smart phones are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of smart phones

What will be an ideal response?