Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon
If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month. A) 100
B) 80
C) 120
D) 200
A
Economics
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The difference between the nominal interest rate and the real interest rate is the
A) money growth rate minus the growth rate of real GDP. B) GDP growth rate. C) price level. D) inflation rate. E) unemployment rate.
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According to Baumol and Blinder, the real-world multiplier will be smaller than 1/(1 ? MPC) because the 1/(1 ? MPC) measure is based on
a. a model that ignores inflation associated with the expansion of income. b. a model that ignores taxes that tend to change as income changes. c. a model that ignores the effects of international trade. d. all of the above.
Economics