Since individual consumers do not know how much of the price they pay for a commodity is due to trade protection, consumers rarely lobby their political representatives to eliminate protection and reduce prices

Over the last 100 years, the average U.S. growth rate in real GDP per person was about

A) 2 percent per year. B) 6 percent per year. C) 12.5 percent per year. D) 1 percent per year.

When prices rise, consumers and businesses hold larger money balances. This reduces the supply of loanable funds, increases the interest rate, and discourages both consumption and investment. This process is called the:

a. interest-rate effect. b. real balance effect. c. investment effect. d. disinvestment effect.