When deflation occurs,
A) the nominal interest rate is equal to the real interest rate and inflation is positive.
B) the real interest rate is greater than the nominal interest rate.
C) the nominal interest rate is equal to the real interest rate and inflation is negative.
D) the nominal interest rate is greater than the real interest rate.
B
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In the above table, suppose imports = $750 billion and government expenditures = $1,000 billion. Hence investment equals
A) -$500 billion. B) $1,000 billion. C) $500 billion. D) $0.
In general, each additional year of schooling is worth about:
A. 10 percent more in overall earnings over the course of a lifetime. B. 5 percent more in overall earnings over the course of a lifetime. C. 25 percent more in overall earnings over the course of a lifetime. D. 50 percent more in overall earnings over the course of a lifetime.