According to the Fisher effect, if a lender and a borrower would agree on an interest rate of 8 percent when no inflation is expected, they should set a rate of _______ when an inflation rate of 3 percent is expected
a. 2 percent
b. 5 percent
c. 8 percent
d. 11 percent
d. 11 percent
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The monthly average of the 35 highest earnings years adjusted for wage inflation is the
A. most the retiree can receive in interest without having part of their benefit reduced. B. PIA. C. AIME. D. amount of the retiree's monthly check.
Using the table above, the labor participation rate is
A) 67 percent. B) 48 percent. C) 75 percent. D) 83 percent. E) 40 percent.
One of the shortcomings of the government's method of measuring unemployment tends to make the official unemployment rate an overestimate of the unemployment problem:
A) people working less than twenty hours a week are counted as unemployed. B) people seeking part-time jobs are counted as fully unemployed. C) people who have given up looking for work are counted as fully unemployed. D) "discouraged workers" aren't counted as unemployed.
The physical or perceived differences between goods in a market that makes them close, but not perfect, substitutes are called
a. complementary goods b. substitute goods c. natural differentiation d. oligopolistic differentiation e. product differentiation