When the public expects inflation, real and nominal interest rates will differ because inflation needs to be accounted for in calculating the real return from lending and borrowing.
Answer the following statement true (T) or false (F)
True
Economics
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Discuss how taxes affect product and input markets
What will be an ideal response?
Economics
A firm in perfect competition perceives the demand curve to be downward sloping
Indicate whether the statement is true or false
Economics
If total revenue falls as more output is produced,
a. marginal revenue is negative b. marginal revenue is positive c. marginal cost is negative d. average revenue is negative e. total costs exceed total revenue
Economics
A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
a. inventory stocks are building up. b. inventory stocks are being depleted. c. their profits are negative. d. many of their workers have little to do.
Economics