e real interest rate is 4 percent a year. When the expected inflation rate is zero, the nominal interest rate is approximately ________ percent a year; and when the expected inflation rate is 2 percent a year, the nominal interest rate is approximately ________ percent a year.
What will be an ideal response?
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Diminishing marginal returns imply that marginal cost is falling.
Answer the following statement true (T) or false (F)
Rent ceilings
A) increase search activity. B) result in surpluses. C) create efficiency. D) benefit producers. E) have no effect if they are set below the equilibrium rent.
For a good whose production creates an external cost, the efficient quantity of output is
A) where the market demand curve and the market supply curve intersect. B) where the marginal social cost curve and marginal benefit curve intersect. C) as low as possible. D) zero. E) the amount of production so that the marginal social benefit exceeds the marginal social cost by as much as possible.
A noncooperative game situation may occur when
A) firms collude. B) firms find collusion too costly. C) firms merge. D) firms agree to price fixing.