For a given nominal interest rate, an unexpectedly low inflation rate ________ the real interest rate.
A. increases
B. has no impact on
C. decreases
D. may either increase or decrease
Answer: A
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From 1950 to 2009, the average length of recessions in the United States has been
A) less than 1 year. B) between 1 year and 2 years. C) between 2 years and 3 years. D) longer than 3 years.
Suppose Mexico and the United States are on the gold standard. If there is a half an ounce of gold in the dollar, and one quarter an ounce of gold in the peso, then the exchange rate is
A) $0.50 = 1/2 peso. B) $1 = 1/4 peso. C) $1 = 2 pesos. D) $1 = 4 pesos. E) $1 = 1/2 peso.
The following equations represent the demand and supply for bird feeders
QD = 35 - P QS = -5 + 3P What is the equilibrium price (P) and quantity (Q - in thousands) of bird feeders? A) P = $5; Q = 30 thousand B) P = $35; Q = 20 thousand C) P = $20; Q = 20 thousand D) P = $10; Q = 25 thousand
An increase in the minimum wage will tend to cause which of the following to occur?
A) an increase in the size of the surplus of labor B) a leftward shift in the demand for labor C) a rightward shift in the supply of labor D) a reduction in the unemployment rate