The real interest rate is defined as the:
A. actual interest rate.
B. fixed-rate on consumer loans.
C. nominal interest rate minus the inflation rate.
D. expected interest rate minus the inflation rate.
Answer: C
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A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as
A) a negative externality. B) a patent. C) a protectionism clause. D) a positive externality.
The ________ is referred to as future value
A) product of interest payments and principal B) ratio of interest payments to principal C) ratio of principal to interest payments D) sum of interest payments and principal
An appreciation of a country's currency
A) decreases the relative price of its exports and lowers the relative price of its imports. B) raises the relative price of its exports and raises the relative price of its imports. C) lowers the relative price of its exports and raises the relative price of its imports. D) raises the relative price of its exports and lowers the relative price of its imports. E) raises the relative price of its exports and does not affect the relative price of its imports.
See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the price elasticity of demand?
A) 0 B) -5/9 C) -1 D) -9/5 E) none of the above