If your bank pays you 6% interest on a savings account and inflation is 2%, your approximate real rate of interest is
A) 2%.
B) 4%.
C) 8%.
D) 12%.
B
You might also like to view...
An advantage of the corporate form of organization is that
A) owners have joint unlimited liability. B) owners have limited liability. C) owners have individual unlimited liability. D) creditors have unlimited liability.
Deposit insurance can lead to ________
A) an increase in adverse selection B) a decrease in bank costs C) a decrease in bank lending rates D) an increase in risks banks take on
Which of the following presidents is remembered for his role in championing American conservation legislation?
a. Warren G. Harding b. Abraham Lincoln c. Ulysses S. Grant d. Theodore Roosevelt
In monopolistic competition
A) firms can earn long-run economic profit due to product differentiation. B) firms are unable to earn economic profit over the long run. C) firms can only earn accounting profits over the long-run. D) firms can block entry.