When the Bureau of Labor Statistics calculates the CPI the goods included a considered the same year after year. Some goods, like cars, became safer an more fuel efficient as time passed. This describes the_bias and results in an___ of inflation.

unmeasured quality/under-estimate

new goods/under-estimate

new goods/over-estimate

unmeasured quality/over-estimate

If the real interest rate remains constant and the inflation rate decreases,

the nominal interest rate decreases.

the nominal interest rate remains constant.

the nominal interest rate increases.

the effect on the nominal interest rate is uncertain.

Which of the following explains why poorer countries with low levels of capital often grow faster than rich countries?

Group of answer choices

There are diminishing marginal returns to capital.

There are increasing marginal returns to capital.

There are constant marginal returns to capital.

None. Poor countries, by definition, grow at slower rates than rich countries.