In 2009, U

question 100

Multiple Choice

In 2009, U.S. Treasury yielded 0.1%, while inflation was 2.7%. What was the real rate in 2009?

• A) -2.6%
• B) 2.6%
• C) -2.8%
• D) 2.8%

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Definitions:

Consumer Demand

The desire and ability of consumers to purchase goods and services at given prices within a specific time period.

Competitive Increasing-cost Industry

An industry in which the entry of new firms causes the prices of inputs to increase, affecting the cost of production for all firms.

Long-run Equilibrium

A state in which all factors of production and inputs can be varied, allowing for full adjustment by firms and the economy, and no excess demand or supply exists.

Decline in Demand

A decrease in the willingness and ability of consumers to buy goods and services at existing prices, which can lead to lower market prices.