If the rate of inflation is zero, prices are expected to remain stable, and the nominal rate of interest is 3 percent, then the
A. nominal rate is greater than the real rate of interest.
B. investment demand schedule will shift upward.
C. real rate of interest is less than the nominal rate.
D. real rate of interest is equal to the nominal rate.
Answer: D
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Which is the true statement?
A) A society does not need an authoritative central plan to generate order and cooperation. B) A society will fall into social chaos without an authoritative central plan. C) An economic system can last only if guided by a central economic plan. D) Both B and C are true.
Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result,
A) the price of sailboats increased and the demand for sailboats decreased." B) the equilibrium quantity of sailboats increased." C) the price of sailboats increased. The higher price caused the supply of sailboats to increase." D) the price of sailboats increased and the quantity of sailboats demanded decreased."
All else constant, a decrease in the level of economic activity in foreign countries could be expected to have an adverse effect on the domestic economy
Indicate whether the statement is true or false
The U.S. Treasury used the First Bank of the United States for all of the following purposes except _____.
(A) To issue representative money. (B) To set interest rates. (C) To hold money generated by taxes. (D) To help the government carry out its powers to tax.