In 2007, the interest rate banks in France charge each other for loans was 4.86 percent. The inflation rate in France in 2007 was 2.8 percent. The real interest rate in France is

A) 7.62 percent
B) 2.06 percent.
C) 0.58 percent.
D) 13.6 percent.


B

Economics

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Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 2015 and $22 in 2016. If 2015 is the base year, Peg's contribution to nominal GDP in 2015 was ________ and in 2016 was ________.

A. $80,000; $99,000 B. $88,000; $90,000 C. $80,000; $90,000 D. $80,000; $88,000

Economics

Explain the funding structure of the Social Security and Medicare programs. Why are these programs in danger of running out of funds in the future?

What will be an ideal response?

Economics

The Fed sells German bonds to commercial banks. Which of the following best describes the impact on the Fed's and the Banking System's balance sheets resulting from this transaction?

A. The Fed's assets and liabilities do not change, only the compositions of the assets change. For the banking system, assets and liabilities increase. B. The Fed's assets increase and its liabilities both increase. For the banking system, the value of assets and liabilities do not change, only the composition of assets changes. C. The Fed's assets and liabilities both decrease. For the banking system, the value of assets and liabilities do not change, only the composition of assets changes. D. The Fed's assets and liabilities increase, the banking systems assets and liabilities decrease.

Economics

In a properly operating, dynamic economy

What will be an ideal response?

Economics