Last year, the nominal interest rate was less than the anticipated rate of inflation
A) This means that not enough loans were made by banks.
B) This means that the real interest rate was negative.
C) This means that the real interest rate was very high.
D) This scenario is not possible.
Answer: B
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Which of the following is likely to cause a rise in the wage rate and a decrease in the number of workers hired in a garage?
A) The shutdown of a nearby garage B) A decrease in the price of the services provided by the garage C) An increase in the price of the services provided by the garage D) The opening of a new garage nearby that offers higher wages to its workers
When government spending and tax revenue are equal, G = T, the economy
a. must be in equilibrium b. has achieved full employment without inflation c. has a budget deficit d. has a budget surplus e. has a balanced budget