The nominal interest rate is 7%, today's price level is 150, and you expect the price level to be 156 one year from now. What is the expected inflation rate? What is the expected real interest rate?

Refer to the table above. When does diminishing marginal returns to capital set in?

A) When the second machine is used B) When the third machine is used C) When the fourth machine is used D) When the fifth machine is used

The "all other things unchanged" assumption is useful because it:

A) states the main economic objectives. B) is a vehicle for determining whether a particular outcome is "good" or "bad.". C) helps to approximate real-world conditions. D) helps to restrict analysis to the effect of a single economic factor.