The Current Interest Rate Is 3

question 74

Multiple Choice

The current interest rate is 3.04 percent.If the interest rate increases by 10 basis points,the new interest rate will be (Round your answer to two decimals.)

• A) 2.94%.
• B) 3.03%.
• C) 3.05%.
• D) 3.14%.

---

Definitions:

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given price level in a specific time period.

Long Run Aggregate-Supply

In economics, it represents the total quantity of goods and services that producers in an economy are willing and able to supply at a full employment level, regardless of the price level, over a long period.

Long-Run Equilibrium

A state in which all factors of production are optimally allocated, and firms in a competitive market have no incentive to change their output level or enter/exit the industry.

Expected Price Level

The anticipated average level of prices in the economy for goods and services, often considered in the context of inflation expectations.