Monetary policy affects the economy ________.
A. indirectly through changes in taxes
B. directly through changes in government spending
C. directly through changes in the aggregate supply
D. indirectly through changes in the interest rate.
Answer: D
Economics
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The real rate of interest equals 5% and the expected rate of inflation equals 2%. The nominal rate of interest equals
A) 2%. B) 3%. C) 5%. D) 7%.
Economics
Fixed costs can be defined as costs that
a. vary inversely with production. b. vary in proportion with production. c. are incurred only when production is large enough. d. are incurred even if nothing is produced.
Economics