In the classical model, we assume there is no ongoing inflation, so there is no need to distinguish between the nominal interest rate and the real interest rate

In the late 1970s, savings and loans institutions were in financial trouble because they

A) had to pay low interest rates to attract depositors, but were earning low interest rates from past investments. B) had to pay low interest rates to attract depositors, but were earning high interest rates from past investments. C) had to pay high interest rates to attract depositors, but were earning high interest rates from past investments. D) had to pay high interest rates to attract depositors, but were earning low interest rates from past investments.

Since 1960, there have been how many years of budget surplus?

a. 5 b. 10 c. 20 d. 30