By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later. During the year the CPI rose from 150 to 162
The nominal interest rate on the bond was ________, and the real interest rate was ________. A) 9%; 1%
B) 9%; -1%
C) 36%; 24%
D) 36%; 12%
A
You might also like to view...
A perfectly competitive firm hires more resources than a monopolist
a. True b. False Indicate whether the statement is true or false
The change in wealth during a period equals:
A. saving - capital gains + capital losses. B. public saving + private saving - transfers. C. saving + capital gains - capital losses. D. saving - investment + capital gains - capital losses.
Refer to the information provided in Figure 6.14 below to answer the question(s) that follow.
Figure 6.14Refer to Figure 6.14. Jason maximizes utility at point
A. A. B. B. C. C. D. D.
Economists conclude that the only way to measure fairness is
A) to insure that the rules are fair. B) to insure that the result is fair. C) to insure that both the rules and the result are fair. D) to compare the allocatively efficient quantity to the equilibrium quantity. E) None of the above answers is correct.