If people expect an inflation rate of 3.3 percent, and the real interest rate is 3 percent, the nominal interest rate equals (approximately)
A) 0.3 percent.
B) 8.6 percent.
C) 6.3 percent.
D) 9.9 percent.
C
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In the United States during the 1930s
A) government spending decreased and taxes increased, resulting in a fiscal contraction. B) government spending and taxes both decreased, resulting in a net fiscal contraction. C) government spending increased and taxes decreased, resulting in a fiscal expansion. D) government spending and taxes both increased, resulting in zero net fiscal expansion.
One economic truism is that any nation's restriction of imports will ultimately lead to
A) an increase in exports. B) a reduction in exports. C) an economic upswing. D) an increase in GDP.
To maximize profit, a perfectly competitive firm will produce where MR = MC, but a monopoly and a monopolistically competitive firm will produce where price = ATC
Indicate whether the statement is true or false
An increase in the reserve requirement increases reserves and decreases the money supply
a. True b. False Indicate whether the statement is true or false