An investor was promised an interest of 9 percent on a loan given out in 2007 that matured in 2011 . However, in real terms, he received an interest of only 7 percent in 2011 . This implies:
a. the rate of inflation in 2011 was 7 percent.
b. there was negative inflation in 2007
c. the rate of inflation in 2011 was 2 percent.
d. there was hyperinflation in 2007.
c
You might also like to view...
In a second-price sealed-bid auction, the ________ bidder wins the item
A) second-highest B) highest C) first D) lowest
The share of industry output sold by the top four steel producers in the country are 19 percent, 15 percent, 12 percent, and 9 percent, respectively. The four-firm concentration ratio for the steel industry is
A. 0.19. B. 0.55. C. 0.138. D. 0.65.
How are economists not like mathematicians, physicists, and biologists?
a. They devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories. b. They use models to represent the real world. c. They try to address their subject with a scientist's objectivity. d. They cannot run lab experiments in the same way that other scientists can.
Signals are
A) used by economic decision-makers to inform others about their plans. B) the method by which government planners inform economic decision-makers about the types of decisions they should make. C) the method by which firms determine their profit maximizing quantity. D) compact ways of conveying to economic decision makers information needed to identify industries where more resources are needed.