Which of the following equations is correct?
A) Real interest rate = Nominal interest rate + Inflation rate
B) Real interest rate = Nominal interest rate - Inflation rate
C) Real interest rate = Nominal interest rate × Inflation rate
D) Real interest rate = Nominal interest rate / Inflation rate
Answer: B) Real interest rate = Nominal interest rate - Inflation rate
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Oil producers expect that oil prices next year will be lower than oil prices this year. As a result, oil producers are most likely to
A) place more oil on the market this year, thus shifting the present supply curve of oil rightward. B) hold some oil off the market this year, thus shifting the present supply curve of oil leftward. C) place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices. D) hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.
During a recession, government deficits can grow because:
A. sales tax revenues tend to decrease because people are spending less. B. government spending often increases as part of an expansionary fiscal policy. C. income tax revenues tend to decrease because people are earning less. D. All of these are true.
Prices in oligopolistic industries are predicted to fluctuate widely and frequently compared to other market structures.
Answer the following statement true (T) or false (F)
The tax cuts of 2008 were valued at approximately one percent of GDP.
Answer the following statement true (T) or false (F)