Suppose the Fed sets federal funds rate at 2.5% , and inflation is 2% . If the…

Suppose the Fed sets federal funds rate at 2.5%, and inflation is 2%. If the risk premium is 1.5%, the real interest rate is: 1%. 1.5%. 2%. 2.5%. Years ago, instead of using a music streaming service like Spotify you would have to go into a store, browse the selection, and buy an album without being able to listen to all the tracks before you purchased the album. What challenge to measuring the true cost of living does the advent of streaming services like Spotify represent? quality improvements new products substitution bias overpricing bias (Table: Real and Nominal Output) Use Table: Real and Nominal Output. The change in nominal output between years 3 and 4 is an increase of: begin{tabular}{|l|} hline 64% \ hline 100% \ hline 180% \ hline 280% \ hline end{tabular}