Suppose you lend $5,000 to your brother for one year at a nominal interest rate of 7%. Inflation during that year is 4%. As a result, you will receive ________ at the end of the year
A) $5,150
B) $5,225
C) $5,350
D) $5,550
C
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Which of the following events in U.S. history did not create economic growth (shift the production possibilities curve outward)?
A. The Louisiana Purchase in 1803 that nearly doubled the land mass of the United States. B. Inventions of machines such as Cyrus McCormick's mechanical reaper. C. The introduction of the moving assembly line in automobile production by Henry Olds. D. The dramatic reduction in the U.S. unemployment rate from 1939 to 1941 as we prepared to enter World War II.
A bond with a high yield
a. gives investors a high return on their investments. b. gives investors a low return on their investments. c. sells for a high price. d. sells for a low price.
A country may gain a temporary comparative advantage if it:
A. remains a political ally to all. B. remains self-sufficient until it stockpiles enough inventory to supply the world. C. is the first to discover and implement a new technology or production process. D. All of these are true.
If a firm's total fixed costs are $30, the firm's marginal cost of producing the first unit of output is $30, and the average total cost of producing two units of output is $42, the marginal cost of the second unit of output is:
A. $84. B. $54. C. $42. D. $24.