Suppose you are a borrower and you expect inflation to be 6 percent over the next year because inflation was 6 percent in the last year. If you do not want to pay more than 2 percent in real terms for any loan you take out, you will not borrow if the interest rate is greater than:

What is meant by the term "omitted variable" in correlation analysis? Explain with an example

What will be an ideal response?

Which of the following transactions will decrease the U.S. current account deficit?

A. A U.S. corporation builds a new factory in Seoul, South Korea. B. Dutch tourists visiting Los Angeles. C. U.S. department stores buy shoes from Italy. D. American firms invest in Tokyo real estate.