If ________ GDP exceeds ________ GDP, employment exceeds its full-employment level and the unemployment rate is ________ the natural unemployment rate

A) real; nominal; below
B) real; potential; below
C) real; potential; above
D) nominal; potential; above
E) nominal; potential; below

B

Economics

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Covered interest arbitrage ensures

A) exchange parity. B) purchasing power parity. C) interest parity. D) All of the above.

Economics

Under a fractional-reserve banking system, banks

a. hold more reserves than deposits. b. generally lend out a majority of the funds deposited. c. cause the money supply to fall by lending out reserves. d. All of the above are correct.

Economics