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Homework answers / question archive / The break-even inflation rate is the A) negative of the TIPS interest rate
The break-even inflation rate is the A) negative of the TIPS interest rate. B) TIPS interest rate minus the real interest rate. C) the nominal interest rate minus the TIPS interest rate. D) the nominal interest rate minus the real interest rate
18. Assume that the asset market is in equilibrium. If nominal money supply grows 2% and real money demand increases 6%, the inflation rate is A) 4%. B) 2%. C) -2%. D) -4%.
to shocks, so the 24. According to classical macroeconomists, prices adjust government should A) rapidly; do little B) slowly; do little C) rapidly; fight recessions D) slowly; fight recessions
25. Which of the following statements is true? A) Nondurable goods sectors are more sensitive to the business cycle than durable goods. B) Investment is an acyclical variable. C) When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long-run aggregate supply curve is horizontal. D) A coincident index is a single number that combines data on a variety of economic variables used to assess the current state of the economy.
