If the real interest rate is 5% and the inflation rate is 3%, then the nominal interest rate is 8%
a. True
b. False
Indicate whether the statement is true or false
True
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Summarize the effects of a production quota on the market price and the quantity produced
What will be an ideal response?
The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes:
A) price and the profits of firms in the market to increase. B) price and the profits of firms in the market to decrease. C) price to increase and the profits of firms in the market to decrease. D) price to decrease and the profits of firms in the market to increase.
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm total revenue is
A) $100. B) $70. C) $30. D) $130.
If velocity and the money supply are __________________, then when one component of spending rises another component of spending ________________
A) constant; must fall B) constant; must rise C) rising; may not necessarily fall D) rising; must rise