Question

1.What is a critical factor that contributed to Reagan’s defeat of Carter in the 1980 presidential election?

	a.	the low rate of unemployment
	b.	the takeover of the U.S. embassy in Baghdad, Iraq
	c.	double-digit inflation
	d.	Margaret Thatcher
	e.	Billy Carter’s beer

2.The measure of money that includes demand deposits and currency only is called:

	a.	M2.
	b.	MB.
	c.	M1.
	d.	MZ.
	e.	M0.

3.The nominal interest rate is:

	a.	the interest rate not adjusted for inflation.
	b.	the “advertised” interest rate.
	c.	a description of the return in units of currency.
	d.	All of these answers are correct.
	e.	None of these answers is correc

Answer 1

A.During the reign of Jimmy Carter,the U.S. the inflation and unemployment rate,both were very high which lead to the defeat of Carter in 1980.

Answer-c.

2.M1 includes physical currency and coin, demand deposits, travelers checks, other checkable deposits,

Answer-c

3.Nominal interest rate is not adjusted for inflation,real exchange rate is.Nominal interest rate is also called advertised rateb of interest while calculating interest rate on loan and it also signifies the rate of return in units of currency.

Answer-d.