The nominal interest rate will be less than the real interest rate when
A) the rate of inflation is negative. B) the real interest rate is negative.
C) the rate of inflation is positive and increasing. D) the rate of inflation is positive but decreasing.
A
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Nominal monthly wages increase from $1,500 to $1,800 while the price of a car increases by 4%. The percentage change in real monthly wages (in terms of cars) is about
A. 14% B. 12% C. 10% D. 16%
If the additional revenue from hiring an additional worker equals the additional costs from hiring the extra worker, then we know that
A) MFC = MPPL. B) MFC/MPPL = wage. C) MFC/MRPL = 1. D) MRPL/P = MFC.
According to the table shown, fixed costs must be:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. $10.
B. $200.
C. $60.
D. Fixed costs cannot be determined by the information in the table.
If interest rates fall in country A, other things constant,
a. demand for that country's currency will fall and the currency will depreciate b. demand for that country's currency will fall and the currency will appreciate c. demand for that country's currency will rise and the currency will depreciate d. demand for that country's currency will rise and the currency will appreciate e. people in country B will pull money out of country A