If expected inflation is constant and the nominal interest rate increased 3 percentage points, the real interest rate would
a. increase 3 percentage points.
b. increase, but by less than 3 percentage points.
c. decrease, but by less than 3 percentage points.
d. decrease by 3 percentage points.
A
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If potential GDP for the fourth quarter of 2012 = $58.5 billion, and real GDP for the fourth quarter of 2012 = $53.7 billion, then the output gap was
A) -8.9%. B) -8.2%. C) 8.2%. D) 8.9%.
Which of the following goods is likely to have the most elastic demand curve?
a. Tobacco products. b. Gasoline. c. Medical care. d. Honda automobiles.
Which of the following is true? a. Price leadership is a form of explicit collusion
b. Price leadership is more likely when there are a substantial number of roughly equally sized firms in oligopoly. c. A price leader is most likely to be a dominant firm in an industry. d. None of the above is true.
Based on this market producer surplus graph, which of the following production levels would create the greatest market producer surplus at the market price of $5 per unit?
a. 10,000
b. 25,000
c. 49,000
d. 51,000