For central bankers to alter the real interest rate by changing the nominal interest rate, which of the following must be true?
A. The expected rate of inflation has to change.
B. The change in the expected rate of inflation must equal the change in the nominal interest rate.
C. The rate of inflation has to remain constant.
D. Inflation expectations are quite stable.
Answer: D
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At long-run equilibrium in monopolistic competition, there is
A. neither allocative nor productive efficiency. B. both allocative and productive efficiency. C. allocative efficiency. D. productive efficiency.
Once the problem of subsistence food growing had been solved, regional growth resulted in which of the following?
(a) Balanced growth across all sectors of the economy (b) Increased import growth and decreased export growth (c) Developed export activity (d) Faltering secondary industrial growth
An example of a market subject to adverse selection would be:
A. the used car market. B. the insurance market. C. the financial market. D. All of these statements are true.
In a perfectly competitive market, if the price of a good is higher than the average total cost of production for the quantity produced, the firm will suffer losses
a. True b. False Indicate whether the statement is true or false