A) 3.
B) -3.
C) 1/3.
D) -1/3.
E) 9.
B) -3.
C) 1/3.
D) -1/3.
E) 9.
Which of the following is a definition of the real interest rate in a world with a positive inflation rate?
a. The percentage increase in the borrower's purchasing power from taking a loan
b. The percentage decrease in the borrower's dollars from taking a loan
c. The percentage increase in the lender's purchasing power from making a loan
d. The percentage increase in the lender's dollars from making a loan
e. The percentage decrease in the lender's dollars from making a loan
C
Economics
You might also like to view...
Probabilities, which can be obtained by repetition or are based on general mathematical principles, are called
A) statistical. B) empirical. C) a priori. D) subjective.
Economics
Which of the following is correct? When expected leakages exceed expected injections, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall. b. Inventories rise, unemployment tends to fall, and prices tend to rise. c. Inventories fall, unemployment tends to rise, and prices tend to rise. d. It is impossible for these two to be unequal. e. The nation's economy expands.
Economics
Which statement is true?
A. There are many firms in a monopolistically competitive industry. B. Monopolistic competitors produce an identical product. C. In order for product differentiation to take place, there must be clear physical differences among the products sold. D. None of these statements are true.
Economics
Tennis balls and tennis rackets are complements. If a 3 percent change in the price of a tennis racket leads to a 9 change in the quantity of tennis balls demanded, the cross elasticity of demand equals
Economics