The nominal interest rate is 7% and the real interest rate is 2.75%. What is the inflation rate?

Suppose there is news that indicates that gasoline supplies might suddenly become disrupted by a truckers' union strike

What would you expect would happen to the demand for gasoline in the present? How might consumers change their behavior and why? What impact would this news have on the price of gasoline immediately? Would it matter whether the news story was accurate?

Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the reserves account and monetary base

a. Reserves account would rise and monetary base would fall. b. Reserves account would not change and monetary base would fall. c. Reserves account would fall and monetary base would not change. d. Reserves account would fall and monetary base would fall. e. Reserves account would fall and monetary base would rise.