If the rate of inflation is zero, prices are expected to remain stable, and the nominal rate of interest is 3 percent, then the
A) real rate of interest is equal to the nominal rate.
B) real rate of interest is less than the nominal rate.
C) nominal rate is greater than the real rate of interest.
D) investment demand schedule will shift upward.
Answer: A
Economics
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A) pays a wage equal to MRP. B) pays a wage greater than MRP. C) pays a wage less than MRP. D) pays a wage equal to MFC.
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Which of the following is NOT an economic function of government?
A) providing a legal system B) ensuring economic stability C) providing government-inhibited goods D) promoting competition
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