If the value of your savings is increasing over time, it must be true that the inflation rate:
A. must be zero.
B. is higher than the nominal interest rate.
C. is lower than the nominal interest rate.
D. and the nominal interest rate are the same.
Answer: C
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The incidence of the tax between buyers and sellers depends only on the elasticity of demand
Indicate whether the statement is true or false
If Jayla's tax liability increases from $10,000 to $16,000 when her income increases from $30,000 to $40,000, her marginal tax rate is
a. 33 percent. b. 35 percent. c. 50 percent. d. 60 percent.
In a country that is experiencing economic growth at 7 percent per year, per capita income will double in approximately
a. seven years. b. ten years. c. fourteen years. d. twenty-one years.
Suppose there are four firms in an industry. The market shares of the four firms are 5 percent, 20 percent, 35 percent, and 40 percent. The Herfindahl-Hirschman index for that industry is
A) 6,650. B) 3,250. C) 1,250. D) 100.