The nominal interest rate is equal to the:
a. Real risk-free interest rate plus expected inflation.
b. Real interest rate plus risk premium plus tax/subsidy premium plus maturity premium.
c. Real interest rate plus risk premium plus tax/subsidy premium plus maturity premium plus expected inflation.
d. Real interest rate plus expected inflation.
e. None of the above.
.D
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If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?
A) The supply increases. B) The supply decreases. C) The quantity supplied increases. D) The quantity supplied decreases. E) Both answers B and D are correct.
As a firm expands its output, cost per unit of output (average cost) decreases and then increases. Average cost and output have
A) a relationship with a minimum. B) a relationship with a maximum. C) no relationship. D) a linear positive relationship.
If the Treasury borrows from the public and makes an expenditure of an equal amount, it will affect
A) the supply of currency. B) the money supply. C) the supply of government securities. D) bank reserves.
States that developed successful and sound commercial banking systems in the antebellum period included all of the following except:
a. New York. b. Ohio. c. Michigan. d. Louisiana.