In the United States for the last 40 years, the nominal interest rate
A) and the real interest rate both decreased in almost every year.
B) and the real interest rate were both constant in almost every year.
C) was constant in most years and the real interest rate fluctuated.
D) exceeded the real interest rate in virtually all the years.
E) exceeded the real interest rate in about one half of the years and the real interest rate was greater than the nominal interest rate in the other half of the years.
Question 2
Which of the following statements is true?
A) If the domestic price of a good in a country is higher than the world price, the country will become an exporter of the good.
B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good.
C) If the domestic price of a good in a country is higher than the world price, the country will become an importer of the good.
D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
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