Real interest rates are the
A) interest rates quoted in the market.
B) interest rates quoted in the market plus the expected inflation rate.
C) nominal interest rates plus the inflation rate.
D) interest rates quoted in the market minus the inflation rate.
D
You might also like to view...
Compare currency board to conventional fixed exchange rate
What will be an ideal response?
Classical macroeconomic theory was discredited and gave way to the first Keynesian approach as a result of
A) the collapse of the gold standard at the outset of World War I. B) the Great Depression of the 1930s. C) the wage-price controls of World War II. D) the rapid inflation of the late 1960s. E) the switch from fixed to flexible exchange rates in the early 1970s.
A firm uses ________ for goods which the consumer takes pride in owning
A) price skimming B) prestige pricing C) penetration pricing D) predatory pricing
Labor productivity increases when
A) the average number of hours people work goes up. B) the unemployment rate decreases. C) the average output produced per worker during a specified time period increases. D) the average output produced per worker during a specified time period decreases.