If the expected inflation rate is 3 percent and banks charge a 10 percent money rate of interest, the real rate of interest is
a. 3 percent.
b. 7 percent.
c. 10 percent.
d. 17 percent.
B
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Suppose two neighborhoods with 10 homes each in Buffalo, New York are identical except one of them is near a toxic waste dum
A) $400,000. B) $1,300,000. C) $900,000. D) $500,000. E) $90,000.
Equity of U.S. companies can be purchased by
A) U.S. citizens only. B) foreign citizens only. C) U.S. citizens and foreign citizens. D) U.S. mutual funds only.
In which of the following situations will both market clearing price and the equilibrium quantity decrease?
A) an increase in demand and no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply
You love bananas. Due to a bad crop harvest, supply of bananas dropped in half. The price for bananas is expected to double in the near future. As a result,
a. your demand for banana will increase when the price doubles b. your demand for banana increases today. c. your demand for peanut butter decreases today d. it does not affect your demand as you love bananas