Americans viewed the 12 percent mortgage interest rates of the 1980s as exorbitantly high while they considered the 7 percent mortgage interest rates of the late 1990s as reasonable. This represents a confusion of

A. actual and expected inflation.
B. real versus nominal inflation.
C. real versus expected mortgage payments.
D. real versus nominal interest rates.


Answer: D

Economics

You might also like to view...

If in the third quarter of 2016 total investment spending was $4,768 billion and depreciation was $3,292 billion, then net investment was equal to

A) $1,476 billion. B) $3,292 billion. C) $4,768 billion. D) $8,060 billion.

Economics

Business debt is an example of a lagging indicator

Indicate whether the statement is true or false

Economics

What is strategic trade policy? What are the pros and cons of such a policy by a nation in its dealings with other nations?

Economics

A U.S. grocery chain purchases olive oil from Tunisia and sells it to U.S. consumers. In which of the following is this transaction included?

a. U.S. consumption and U.S. imports b. U.S. consumption but not U.S. imports c. U.S. imports but not U.S. consumption d. neither U.S. consumption nor U.S. imports

Economics