Author Question: Other things equal, the equation for the real interest rate indicates that: a. as inflation ... (Read 67 times)

123654777 · **on:** Jun 30, 2018

Other things equal, the equation for the real interest rate indicates that:
a. as inflation increases, the real interest rate will rise.
b. as inflation increases, the nominal interest rate will fall.
c. as inflation decreases, real income will fall.
d. as inflation decreases, the real interest rate will rise.
e. as inflation changes, the real interest rate will not change.

Question 2

Economics is most importantly concerned with:
a. how to profit from trading in the stock market.
b. government taxation and spending.
c. studying how we allocate scarce resources to satisfy unlimited wants.
d. how to successfully launch a business.