Answer the following questions true (T) or false (F)
1. The nominal interest rate plus the inflation rate equals the real interest rate.
2. If inflation expectations are increasing, we would expect that the nominal interest rate would also be increasing, holding all else constant.
3. The nominal interest rate minus the inflation rate equals the real interest rate.
1. FALSE
2. TRUE
3. TRUE
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A(n) ________ market is a non-legal market for regulated goods and services
A) open B) closed C) black D) oligopoly
On-budget expenditures:
What will be an ideal response?
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
The government's chief forecasting gauge for business cycles is the:
A. unemployment rate. B. real GDP. C. personal income index. D. index of leading indicators.