If the nominal interest rate is 2 percent and inflation is 3 percent, the real interest rate is:
A. 2 percent.
B. 1 percent.
C. ?1 percent.
D. 0 percent.
Answer: C
You might also like to view...
The horizontal axis of a graph that shows a market demand curve indicates the
A. quantities that consumers are willing and able to buy at various prices. B. different prices at which a product can be purchased. C. number of consumers who are in the market for a product. D. various quantities of a product at which the market will be cleared.
Define the following terms:
a) Indifference curve b) Utility
Adding up all transactions in the economy ________ "double counting" and thus produces ________ measure of GDP
A) avoids, a proper B) avoids, an improper C) results in, a proper D) results in, an improper
Overshooting is when exchange rates:
a. adjust more in the short run than they need to for long-run equilibrium. b. adjust less in the short run than they need to for long-run equilibrium. c. are unable to adjust because of fixed exchange rates. d. adjust at the same rate as prices.