The nominal interest rate equals the:
A. inflation rate minus the real interest rate.
B. real interest rate minus the inflation rate.
C. real interest rate plus the inflation rate.
D. real interest rate divided by the inflation rate.
Answer: C
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In the mainstream view, one major source of instability in the macro economy is the volatility of
A. investment spending. B. product prices. C. consumer spending. D. labor wages.
Which of the following was never a labor union?
a. American Federation of Labor b. Labor Relations Board c. Congress for Industrial Organization d. Knights of Labor
The business cycle consists of four phases. In sequence, they are prosperity,
a. recovery, recession, and downturn b. recovery, downturn, and recession c. upturn, downturn, and recession d. downturn, recovery, and recession e. downturn, recession, and recovery
The government's budget deficit refers to the:
A. Total amount of debt that the government has incurred over the years B. Difference the nation's amount of exports and its total amount of imports C. Gap between high government spending and its lower tax revenues D. Decrease in the amount of government spending form one year to the next