(05.05 MC) The economy depicted in this data table is closed…

(05.05 MC) The economy depicted in this data table is closed, with no international trade of any kind. Government spending $40 billion Government transfer payments $20 billion Tax revenues $40 billion Private savings $60 billion Business capital investments $60 billion Based on the data above, which of the following must be true?

(04.02 MC) Suppose banks decided to charge a 17% interest ra…

(04.02 MC) Suppose banks decided to charge a 17% interest rate, assuming an expected inflation rate of 5%. However, they ended up charging an interest rate of 14%, with a real interest rate of 7%. Which of the following statements holds true for the given scenario?