If the nominal interest rate is 5 percent and the inflation rate is 2 percent, then the real interest rate is 7 percent
a. True
b. False
Indicate whether the statement is true or false
False
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Economies of scale exist whenever long-run average costs:
a. Increase as output is increased b. Remain constant as output is increased c. Decrease as output is increased d. Decline and then rise as output is increased e. None of the above
When economists refer to an economy's price level, they indicate: a. the rate of inflation in that economy
b. the prices of goods and services relative to consumers' incomes. c. a composite measure of prices of all goods and services. d. a period of level, or steady, prices in that economy. e. the price of a specific consumer good.
A. versatility and flexibility. B. rationality. C. pleasure or satisfaction. D. purposefulness
A. versatility and flexibility. B. rationality. C. pleasure or satisfaction. D. purposefulness.
The U.S. dollar is called a ________ because it is often used as an intermediary to accomplish trading between two other currencies.
A. common currency B. main currency C. vehicle currency D. primary currency