How much would the nominal interest rate be if the real rate of interest were 7 percent and the expected rate of inflation were 4 percent?
What will be an ideal response?
11 percent
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The demand curve for most goods is normally:
A) parallel to the vertical axis. B) parallel to the horizontal axis. C) upward sloping. D) downward sloping.
The U.S. government deficit as a percentage of GDP was much larger during World War II than it was in the 1980s and 1990s
a. True b. False Indicate whether the statement is true or false
The tax rebate of 2008 was intended to
a. increase aggregate supply. b. decrease aggregate supply. c. increase aggregate demand. d. decrease aggregate demand.
Everything else held constant, an increase in the time deposit ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase B) no change; an increase C) a decrease; a decrease D) no change; a decrease