In October of 2014, the nominal interest rate earned on money market accounts was around 0.20 percent. This interest rate is a measure of which of the following?

A) the opportunity cost of holding money
B) the inflation rate
C) the demand for money
D) the real interest rate

A

Economics

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An American tourist in the Netherlands buys tulips from a local producer. This is an example of a(n) ________ by the tourist

A) transfer payment B) import C) export D) foreign direct investment

Economics

The foreign purchases, interest rate, and real-balances effects explain why the:

A. Aggregate demand curve is downward-sloping B. Aggregate demand curve may shift to the left or right C. Economy will adjust towards equilibrium D. Aggregate expenditures schedule may shift up or down

Economics