Other things equal, an increase in defense spending will increase ...

[ap345]

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

[kristenb95]

Answer to Question 1

True

Answer to Question 2

a

[ap345]

Gracias!

[laurnthompson]

Thanks for the timely response, appreciate it