If you borrow money at a nominal interest rate of 5 percent and the inflation rate is 10 percent, what real interest rate will you pay?
a. -5 percent
b. 0.5 percent
c. 2 percent
d. 5 percent
e. 10 percent
A
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A modified version of utilitarianism proposed by John Rawls states that
A) the distribution of the economic pie is fair if the rules are fair. B) the distribution of the economic pie is fair if it achieves the greatest happiness for the greatest number of people. C) the fair distribution of the economic pie is the one that makes the poorest person as well off as possible. D) goods may be transferred from one person to another only by voluntary exchange.
If the above figure illustrated a perfectly competitive industry, the equilibrium market price would be equal to
A) $4. B) $7. C) $9. D) $11.
In the fixed-price Keynesian model, what would be the impact of an increase in aggregate expenditure on the aggregate demand curve and real GDP?
a. The aggregate demand curve would shift rightward and real GDP would increase. b. The aggregate demand curve would shift leftward and real GDP would decrease. c. The aggregate demand curve would shift rightward and real GDP would decrease. d. The aggregate demand curve would shift leftward and real GDP would increase. e. The aggregate demand curve and real GDP would both remain constant.
Which of the following would likely cause an increase in the supply of single-serve coffee makers?
A. a decrease in the cost of manufacturing single-serve coffee makers B. a widespread expectation that the price of single-serve coffee makers will rise in the future C. a decrease in the number of consumers demanding single-serve coffee makers D. an increase in the price of single-serve coffee makers