Author Question: Other things equal, an increase in defense spending will increase the budget deficit. a. True b. ... (Read 113 times)

ap345 · **on:** Jun 30, 2018

Other things equal, an increase in defense spending will increase the budget deficit.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If two parties to a loan contract agree that the lender should earn an 8 percent increase in purchasing power as a result of a loan and if the inflation rate is 5 percent, the nominal interest rate is _____.
a. 13 percent
b. 8 percent
c. 5 percent
d. 3 percent
e. 1 percent