To understand the public sector, we must understand not only how government allocates resources, but also the importance role that _____ play in the policy-making process

If the nominal interest rate is 10% and the rate of inflation is 7%, what is the real rate of interest?

A. 2.8% B. 10.3% C. 7.0% D. 3.0%

If the market prices of publicly traded stocks and bonds rise, while the productive capacity of those assets has not increased, which of the following has occurred?

A. Nominal wealth has increased. B. Nominal wealth has increased, but real wealth has decreased. C. Real wealth has increased. D. Tangible wealth must have declined in value.