If an item has an absolute price elasticity of demand that is greater than 1, we say the demand for the item is

Suppose that, initially, the nominal interest rate is 6 percent and the inflation rate is 3 percent. If the inflation rate increases to 6 percent, what will be the new nominal interest rate?

A) 6 percent B) 1 percent C) 11 percent D) 9 percent

From a society's viewpoint, when all resources are fully employed, a decision to have more of one thing means we must give up some of another thing

a. True b. False Indicate whether the statement is true or false