The real rate of interest equals 8%, and the expected rate of inflation equals 2%. The nominal rate of interest is
A) 2%.
B) 6%.
C) 8%.
D) 10%.
D
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Refer to the scenario above. What is the payoff to Firm A in equilibrium?
A) $2.4 million B) $2.6 million C) $5.2 million D) $3.0 million
How can an oligopolist make a profit at a given price, whereas a firm in perfect competition might suffer a loss at that same price?
What will be an ideal response?
An example of price discrimination is the price charged for:
a. an economics textbook at a campus bookstore. b. gasoline. c. theater tickets that offer lower prices for children. d. a postage stamp.
Refer to the information provided in Table 20.4 below to answer the question(s) that follow. Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. Before specialization, Germany produces 45 cases of beer and 30 cases of wine, and Chile produces 18 cases of beer and 24 cases of wine. After specialization, the increase in beer production is
A. 0 cases of beer. B. 2 cases of beer. C. 8 cases of beer. D. 12 cases of beer.