The real interest rate tells you
a. how fast the number of dollars in your bank account rises over time.
b. how fast the purchasing power of your bank account rises over time.
c. the number of dollars in your bank account today.
d. the purchasing power of your bank account today.
b
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One effect of market intervention is resource misallocation
a. True b. False Indicate whether the statement is true or false
Suppose the demand for a product is lnQxd = 12 ? 3 ln Px. Then product x is:
A. unitary elastic. B. elastic. C. inelastic. D. It cannot be determined without more information.
The sum of public spending on goods and services and transfer payments during a given period cannot exceed tax revenues plus borrowed funds. This is the statement for
A) ad valorem taxation. B) an excise tax. C) a sales tax. D) the government budget constraint.
Refer to the above figure. If the relevant aggregate demand curve is AD2, what is the current economic situation?
A. overemployment B. inflationary gap C. recessionary gap D. equilibrium