Walter puts money in a savings account at his bank earning 3.5 percent. One year later he takes his money out and notes that while his money was earning interest, prices rose 1.5 percent. Walter earned a nominal interest rate of
a. 3.5 percent and a real interest rate of 5 percent.
b. 3.5 percent and a real interest rate of 2 percent.
c. 5 percent and a real interest rate of 3.5 percent
d. 5 percent and a real interest rate of 2 percent
b
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Which of the following is a distinguishing feature of a natural monopoly?
a. A rising average total cost curve b. A declining average total cost curve c. A declining marginal cost curve d. A vertical average total cost curve
Germany has a comparative advantage in the production of which product?
National saving is saving by:
A. the entire economy. B. the government. C. households and firms D. households for retirement.
Refer to the table, in which the values for columns (2) through (5) are in acres. If the relevant columns are (1), (2), and (3), land rent will be:
A. $100 per acre.
B. $200 per acre.
C. $300 per acre.
D. $400 per acre.