The money rate of interest that lenders pay for borrowed funds minus the real rate of interest equals the
a. nominal rate of interest.
b. present value of an asset.
c. inflationary premium.
d. productivity of capital.
C
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The monetary base is the sum of
A) coins, Federal Reserve notes, and banks' reserves at the Fed. B) Federal Reserve notes, Treasury deposits at the Fed, banks' reserves at the Fed, and coins. C) coins, Federal Reserve notes, and individuals' deposits at the Fed. D) coins, Federal Reserve notes, and gold at the Fed. E) Federal Reserve notes and banks' reserves at the Fed.
In a country like Saudi Arabia, which earns substantial income from holding the stocks and bonds of other countries, we would expect
A) GNP to be larger than GDP. B) a current account deficit. C) a current account surplus larger than GNP. D) a current account surplus larger than GDP. E) GDP to be larger than GNP.