You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. If inflation over the year is 2%, what is the real interest rate you are paying?

A) 2% B) 2.5% C) 3% D) 5%


C

Economics

You might also like to view...

Refer to Figure 9.4. In the long run, how much should the firm produce at the price P3?



A. 0

B. Q1

C. Q2

D. Q3

Economics

All increases in the level of human capital take place in schools

a. True b. False Indicate whether the statement is true or false

Economics

For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following measures includes the effects of taxes? a. Net national product

b. Gross national product. c. National income. d. Personal income.

Economics