The real rate of interest is
A) the nominal interest rate plus the inflation rate.
B) the nominal interest rate minus the inflation rate.
C) the interest rate determined by the supply and demand in the money market.
D) the nominal interest rate.
Answer: B
You might also like to view...
A one-year Treasury bill with an annual yield of 10 percent and a price of $909.09 has a face value of
A) $900. B) $1,000. C) $980. D) $1,020.
Why does popular democracy, as defined in the U.S. Constitution, contribute to long-term economic growth and political stability?
(a) It allows regular change in the structure of the government. (b) It provides incentive to invest, innovate and invent. (c) It permits the President of the U.S. to choose fiscal policies to advance contemporary mercantilism. (d) It transfers wealth from the extremely wealthy to the desperately poor.
Voluntary exchange requires that there must be mutual gain
a. True b. False Indicate whether the statement is true or false
The bottom line is that the firm produces rather than shuts down if there is some rate of output where the price at least covers average fixed cost
Indicate whether the statement is true or false