The equilibrium real interest rate is the rate ________
A) at which the output gap is zero
B) at which the inflation rate is low
C) controlled by the central bank
D) all of the above
E) none of the above
A
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If an import quota is imposed on imports of shrimp into the United States, U.S. producers ________ and the U.S. economy will ________
A) gain; be unaffected B) gain; lose C) lose; gain D) lose; lose E) gain; gain
The figure above shows the U.S. production function. How would an increase in unemployment benefits be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in unemployment benefits cannot be shown in the figure.