Roughly speaking, the nominal interest rate is __________ than the real interest rate by the amount of the expected __________
A) higher; growth rate of real GDP
B) higher; inflation rate
C) lower; growth rate of real GDP
D) lower; inflation rate
B
You might also like to view...
Assume that product X has a negative cross elasticity with respect to shoes. If the price of shoes rises
A) the demand for product X will decrease. B) the quantity demanded for product X will increase. C) the demand for shoes will fall. D) the demand for product X will increase.
According to a recent survey, in 2012, the number of U.S. households that owned equitites was about:
a. 3 % b. 27 % c. 45 % d. 55 %
If the demand for legal services decreases, the demand for legal assistants probably will:
A. increase. B. decrease. C. not be affected. D. change in a manner that cannot be predicted.
Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it. If the cost of paving the driveway is $2,000, then it is ________ for the driveway to be paved because total economic surplus would ________.
A. efficient; increase by $400 B. inefficient; fall by $1,100 C. efficient; increase by $1,100 D. inefficient; fall by $500