An economic variable that moves in the same direction as aggregate economic activity (up in expansions, down in contractions) is called

The nominal interest rate is 12 percent and the inflation rate is 4 percent. The opportunity cost of holding a dollar for a year is

A) 16 cents. B) 88 cents. C) 48 cents. D) 12 cents. E) 8 cents.

When the government's expenditures exceed its tax revenues, the budget

A) has a deficit and the national debt is increasing. B) has a surplus and the national debt is increasing. C) is balanced and the national debt is increasing. D) has a deficit and the national debt is decreasing. E) None of the above because by law the government's expenditures cannot exceed its tax revenue.