If the nominal interest rate is 8.3% and the inflation rate is 4.4%, what is the real interest rate?


The real interest rate is 3.9%.

Economics

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Consider two banks: Bank A and Bank B. Suppose the value of liabilities of both the banks is equal. However, Bank A is solvent but Bank B is insolvent. This would imply that:

A) the value of Bank B's assets exceeds the value of Bank B's liabilities. B) the value of Bank A's liabilities exceeds the value of Bank A's assets. C) the value of Bank B's assets exceeds the value of Bank A's assets. D) the value of Bank A's assets exceeds the value of Bank B's assets.

Economics

The AE curve illustrates the relationship between

A) real GDP and actual expenditure. B) the interest rate and aggregate planned expenditure. C) real GDP and the interest rate. D) aggregate planned expenditure and real GDP. E) the quantity of real GDP demanded and the price level.

Economics

Featherbedding refers to

A) the practice of laying off union activists. B) increased international competition and its negative impact on trade unions. C) union leaders arguing for higher wages when they know that they will not become unemployed given their seniority. D) the practice of inducing a firm to use more than the cost-minimizing level of labor.

Economics

Presently, GDP is ________ to compensate for the costs of environmental damage

A) fully adjusted B) partially adjusted C) adjusted on a chain-weight basis D) not adjusted

Economics