If the nominal interest rate is 2 percent and the real interest rate is 1 percent, inflation is:
A. 0 percent.
B. 2 percent.
C. ?1 percent.
D. 1 percent.
Answer: D
You might also like to view...
The aggregate demand curve has an upward slope due to the positive relationship between the price level and aggregate quantity demanded
a. True b. False Indicate whether the statement is true or false
Oligopolies would like to act like a
a. duopoly, but self-interest often drives them closer to the perfectly competitive outcome. b. competitive firm, but self-interest often drives them closer to the duopoly outcome. c. monopoly, but self-interest often drives them to charge a higher price than would be charged by a monopoly. d. monopoly, but self-interest often drives them closer to the perfectly competitive outcome.
Economists assume that tastes and preferences of individuals are:
a. constantly in flux. b. determined by product prices. c. unchanged during one's life. d. given and are relatively stable.
A bowed-out production possibility frontier represents decreasing opportunity costs.
Answer the following statement true (T) or false (F)