You are given the following information about the economy: (1) nominal interest = 8 percent; (2) real rate of interest = 6 percent. The inflation premium is:
A. 14 percent.
B. 6 percent.
C. 2 percent.
D. 8 percent.
Answer: C
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In the 1980s and most of the 1990s, the federal government
A) ran small deficits. B) ran small surpluses. C) ran large deficits. D) was balanced.
The outcome of the state of nature effects the payoff to the agent under a
A) fixed-fee contract. B) hire contract. C) contingent contract. D) All of the above.
U.S. productivity growth has rebounded since 1995 largely as a result of:
A. discoveries of new natural resources. B. advances in information and Communication Technology (ICT). C. increases in human capital. D. increased political stability.
Official reserve assets are
A. government T-bills and T-bonds. B. government holdings of SDR's. C. money-like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them. D. the gold holdings of the country's households and businesses.