If the nominal interest rate is 2 percent and the anticipated inflation rate is 6 percent, then
A. the real interest rate is -8 percent.
B. the real interest rate is -4 percent.
C. the real interest rate is 8 percent.
D. the real interest rate is 4 percent.
Answer: B
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A consumer who chooses the optimal bundle will go to a point on the highest attainable indifference curve.
Answer the following statement true (T) or false (F)
The demand for factors of production is referred to as:
A. primary demand. B. derived demand. C. implied demand. D. production demand.
Figure 7-7
In the price range between $3 and $4, the price elasticity of the demand curve depicted in is
a.
highly elastic.
b.
approximately equal to -0.33.
c.
approximately equal to -3.
d.
of unitary elasticity.
Trees are considered:
A. a nonrenewable resource. B. physical capital. C. a renewable resource. D. technology.