Suppose a credit union strives for a 3% real return on its loans to members, and expects a 2% inflation rate. What nominal rate of interest should it charge its members?

Horizontal merger occurs when

A) two firms merge where one had sold its output to the other as an input. B) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve. C) two firms merge where each is about the same size. D) two firms producing a similar product merge.

The official measure of the deficit is equal to

A) iB + G - T. B) iB + T - G. C) rB - G + T. D) (i - ?)B + G - T. E) none of the above