The rate of interest that you are paying on a mortgage loan is 6.5 per cent per year. Inflation is running at 3 per cent per year. The real rate of interest that you are paying is therefore:

Question 7 options:

3.5 per cent.

6.5 per cent.

3 per cent.

9.5 per cent.

In Figure 2-3, technology D is dominated by which technology?

Isocosts 1- Worker's best response curve Effort per hour 0.7- - -- B 0.5-+ - - 0 0 6 10 12 Hourly wage, $\f