If the nominal interest rate is 3 percent and the inflation rate is 4 percent, then the real interest rate is
a. 7 percent.
b. -1 percent.
c. 3 percent.
d. 4 percent.
b
Economics
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The net-export effect of expansionary monetary policy is a(n)
A) depreciation of the value of the dollar and the decrease of U.S. net exports. B) appreciation of the value of the dollar and the increase of U.S. net exports. C) appreciation of the value of the dollar and the decrease of U.S. net exports. D) depreciation of the value of the dollar and the increase of U.S. net exports.
Economics
The fact of increasing opportunity costs means that a production possibilities frontier will
A) be a straight line. B) reach a maximum and then gradually decrease. C) bow outward. D) shift outward over time.
Economics