If the real interest rate is -1.4% and the nominal interest rate is 0.6%, expected inflation equals
A) -2%
B) -0.8%
C) 0.8%
D) 2%
D
You might also like to view...
Inflation shocks and shocks to potential output are called ________ shocks.
A. aggregate supply B. aggregate demand C. monetary policy D. fiscal policy
If education has positive externalities, _____
a. the resources will be efficiently allocated in providing education b. the private costs of production will be lower than the social costs c. the government can help to bring about a more efficient allocation through subsidies d. the benefits of consumption accrue only to the consumers e. the government can help to bring about a more efficient allocation by levying education cess
Which of the following is an example of a normative, as opposed to positive, statement?
a. If the price of a product decreases, people's willingness to buy that product will increase. b. Reducing tax rates on the wealthy would benefit the nation. c. If the national saving rate were to increase, so would the rate of economic growth. d. The elimination of trade restrictions would increase an economy's standard of living.
Financial intermediaries include each of the following, except:
A. commercial banks. B. credit unions. C. savings banks. D. the New York Stock Exchange.