The nominal interest rate minus the real interest rate approximately equals the

A) rate of increase in the amount of investment.
B) inflation rate.
C) rate of increase in the income.
D) rate the bank receives to cover lending costs.

B

Economics

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Which of the following events shifts the aggregate demand curve leftward?

A) an increase in consumption expenditures B) a decrease in taxes C) a decrease in government expenditures on goods and services D) an increase in net exports of goods and services

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Which of the following measures gives the earliest warning of increasing inflation?

A) the Consumer Price Index B) the Producer Price Index C) the Personal Consumption Expenditure Index D) All of these should signal the same short-run inflation.

Economics