When the public expects inflation, real and nominal rates of interest will be the same.

One of the best defenses we have against malaria these days comes from a fern-like weed called wormwood. Fluctuating supply and demand have pushed the plant's price from $155 per kilo one year, to over $1000 the next

There is a push to set a price ceiling for the plant. Which of the following would NOT occur if there was a price ceiling set below the equilibrium price on wormwood? A) The wormwood market would be allocatively efficient because its price would not fluctuate. B) A wormwood shortage might occur. C) A black market for wormwood may be created. D) There would be an increase in inefficiency in the wormwood market.

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, Point E necessarily represents

A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.