The relationship between the nominal interest rate, the real interest rate, and the inflation rate is that the
A) real interest rate is equal to the nominal interest rate plus the inflation rate.
B) nominal interest rate is equal to the real interest rate plus the inflation rate.
C) real interest rate is equal to the nominal interest rate multiplied by the inflation rate.
D) nominal interest rate is equal to the real interest rate minus the inflation rate.
E) nominal interest rate is equal to the real interest rate divided by the inflation rate.
B
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If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________
A) 10.0 B) 6.0 C) 0.25 D) 16.0 E) 4.0
Which of the following is NOT part of GDP calculated using the expenditure approach?
A) General Motors' purchases of new capital equipment B) expenditures by the federal government for national defense C) Social Security payments made to the elderly D) the purchase of new homes by consumers