If you want to earn a real interest rate of 3% on money you lend, and you expect that inflation will be 2%, what nominal rate of interest will you charge?

What incentive does price cap regulation attempt to give the firm? How does it give the firm this incentive?

What will be an ideal response?

Which of the following is held constant when constructing a production possibilities curve?

A) the price level B) the income level C) combination of goods produced D) the amount of total resources used