If the nominal interest rate is 8 percent and the current inflation rate is 3 percent, approximately what is the real interest rate?
A) 11 percent
B) 8 percent
C) 5 percent
D) 3 percent
C
You might also like to view...
Social forces:
a. affect the price mechanism through cultural norms. b. affect the price mechanism through the educational system. c. affect the price mechanism through scarcity. d. do not affect the price mechanism.
A group of 100 people seek out an insurance company to underwrite health insurance for its members. If expected medical spending for the group is $150,000, what will the average premium be if the health insurance company estimates the premium adding net loading costs of 20 percent?
a. $1,200 b. $1,500 c. $1,800 d. $3,000
In order to increase society's well-being, measles vaccinations might be
a. taxed to discourage production b. subsidized to encourage production c. taxed to encourage production d. subsidized to discourage production e. provided without government intervention
A cash gift causes the budget line to:
A. shift to the right in a parallel fashion. B. rotate clockwise. C. shift to the left in a parallel fashion. D. None of the statements is correct.