The difference between nominal and real interest rates is that
A) nominal interest rates are measured in terms of a country's output, while real interest rates are measured in monetary terms.
B) nominal interest rates are measured in monetary terms, while real interest rates are measured in terms of a country's output.
C) nominal interest rates can fluctuate, while real interest rates always remain fixed.
D) real interest rates can fluctuate, while nominal interest rates always remain fixed.
E) real interest rates are the same in every country, while nominal interest rates are different for every country.
B
You might also like to view...
What is a dominant strategy equilibrium?
What will be an ideal response?
Economic rent is defined as
a. the opportunity cost of a resource b. the payment to a resource in excess of its opportunity cost c. opportunity cost d. total earnings e. the part of a homeowner's housing that is included in GDP accounts
The estimated demand for a good is
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If income decreases by $1,000, all else constant, quantity demanded will ________ by ________ units.
A. decrease; 500 units B. decrease; 1200 units C. increase; 500 units D. decrease; 320 units E. increase; 3.2 units
New residential housing is placed under consumer expenditures in aggregate demand.
Answer the following statement true (T) or false (F)