If the purchasing power of your debt is increasing over time, we know that the:
A. inflation rate is greater than the nominal interest rate.
B. real interest rate is negative.
C. nominal rate of interest is positive.
D. real interest rate is positive.
Answer: D
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Moving along a country's PPF, a reason opportunity costs increase is that
A) unemployment decreases as a country produces more and more of one good. B) unemployment increases as a country produces more and more of one good. C) technology declines as a country produces more and more of one good. D) some resources are better suited for producing one good rather than the other. E) technology must advance in order to produce more and more of one good.
If a nation's current account is -$200 billion and its financial account (excluding its official settlements balance) is $175 billion, how much is its official settlements balance?
A) -$25 billion B) +$25 billion C) -$375 billion D) +$ 375 billion
Profits
a. are what remains from the selling price after factors have been paid. b. accrue to entrepreneurs. c. are lower than most people think. d. All of the above are correct.
A market in which final goods and services are exchanged is a
A. Labor market. B. Public goods market. C. Factor market. D. Product market.