A nation's capital consists mainly of stocks, bonds, and other financial assets

The figure above shows a production possibilities frontier. In the figure, which of the following combinations of the two goods are efficient?

A) 4 million cell phones and 4 million DVDs B) 2 million cell phones and 13 million DVDs C) 5 million cell phones and 15 million DVDs D) no cell phones and 15 million DVDs E) None of these combinations is efficient.

If the inflation rate is greater than the nominal interest rate, then the

A) real interest rate will be negative. B) real interest rate will be positive. C) inflation rate will increase. D) inflation rate will decrease. E) nominal interest rate will be negative.