Suppose the nominal interest rate was 5 percent and the inflation rate was 3.5 percent
a. The dollar value of savings increased at 1.5 percent, and the value of savings measured in goods increased at 3.5 percent.
b. The dollar value of savings increased at 3.5 percent, and the value of savings measured in goods increased at 1.5 percent.
c. The dollar value of savings increased at 3.5 percent, and the value of savings measured in goods increased at 5 percent.
d. The dollar value of savings increased at 5 percent, and the value of savings measured in goods increased at 1.5 percent.
D
You might also like to view...
By the year 2100, global warming may lead to
a. shifts in world rain patterns. b. disruption of agriculture. c. expanded deserts. d. coastal inundation. e. all of the above
The infant industry argument for trade protectionism holds that
A) new industries sometimes need a protective environment in which to grow so that they can compete with older, more established foreign competitors. B) foreign competitors are often viewed as "infants" by large U.S. firms. C) tariffs are often preferred to quotas. D) quotas raise prices more than tariffs raise prices. E) a and c
Whether exchanges are strictly domestic or across international borders, every party to any transaction
A. must pay the highest retail value. B. expects to gain. C. tries to break even. D. produces the highest rate of output.
The Herfindahl index:
A. measures the prices charged by oligopolistic manufacturers. B. is another name for the four-firm concentration ratio. C. tells us whether oligopolistic firms are engaging in collusion. D. gives much greater weight to larger firms than to smaller firms in an industry.