In which case below is the real interest rate the highest?

a. the nominal interest rate = 1% and inflation = 3%
b. the nominal interest rate = 6% and inflation = 4%
c. the nominal interest rate = 2% and inflation = -1%
d. the nominal interest rate = 2% and inflation = 1%

c

Economics

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Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________

A) a comparative advantage; an absolute advantage B) an absolute advantage; an absolute advantage C) an absolute advantage; a comparative advantage D) a comparative advantage; a comparative advantage

Economics

Refer to above figure. In the absence of trade, what is the country's consumer surplus?

What will be an ideal response?

Economics