Suppose you place $10,000 in a retirement fund that earns a nominal interest rate of 8 percent. If you expect inflation to be 5 percent or lower, then you are expecting to earn a real interest rate of at least:
A. 1.6 percent.
B. 3 percent.
C. 4 percent.
D. 5 percent.
Answer: B
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According to neoclassical growth theory, the higher real GDP per person from economic growth will
A) not last because the population will increase. B) last because there is no link between growth and population. C) last indefinitely regardless of any other factor. D) last as long as technological change continues.
A self-managed team is still headed by a boss
Indicate whether the statement is true or false
If a U.S. citizen buys a car produced in Germany, this transaction will add to
a. U.S. aggregate demand. b. U.S. aggregate supply. c. German aggregate demand. d. German imports.
Currently the requirement of holding a non-interest-bearing reserve account at the Fed must be met by:
A. all banks, member or not. B. member banks and nonmember banks over $100 million in assets. C. only nationally chartered banks. D. only member banks.