Under which of the following assumptions would the nominal interest rate be equal to the real interest rate?
A) Expected inflation is equal to the nominal interest rate.
B) Expected inflation is equal to the real interest rate.
C) Expected inflation is negative.
D) Expected inflation is equal to zero.
E) none of the above
D
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Ali's Gyros operates near a college campus. Ali has been selling 120 gyros a day at $4.50 each and is considering a price cut. He estimates that he would be able to sell 200 gyros per day at $3.50 each
a. Calculate the price elasticity of demand using the midpoint formula. b. Calculate the change in revenue as a result of the price cut.
If a monopolist is producing the quantity at which price equals marginal cost, it should
A) continue to produce this amount if it wants to maximize profits. B) reduce output if it wants to maximize profits. C) reduce price and keep output unchanged if it wants to maximize profits. D) increase output if it wants to maximize profits.
Which of the following is the best definition of economics?
a. An investigation of the quantities and prices of the various goods produced by the nations of the world. b. A study of why inflation and unemployment periodically plague the U.S. economy. c. An analysis of how individuals and societies deal with the problem of scarcity. d. An examination of the role that money plays in the economy. e. A study of how goods and services are distributed throughout the world.
The Bureau of Labor Statistics defines a person as unemployed if he or she does not:
a. work full time. b. have a job but is actively seeking one. c. earn a wage above the minimum wage rate. d. earn enough income to be above the poverty level. e. work as much as he or she desires.