Contractionary fiscal policy tends to ________ consumption because it may reduce ________

A. increase; disposable income.
B. increase; savings.
C. reduce; savings.
D. reduce; disposable income.

Answer: D

Economics

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If the inflation rate is 3 percent and the real interest rate is 3 percent, then what is the nominal interest rate?

What will be an ideal response?

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A one-year discount bond with a face value of $1000 has an interest rate of 4%. What is its price?

A) $960 B) $961.54 C) $996 D) $1,040

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