The difference between nominal and real interest rates is that
A. real interest rates are what you get after having adjusted nominal rates for inflation.
B. nominal interest rates are what borrowers pay and real interest rates are what lenders receive.
C. real interest rates are almost always greater than nominal interest rates.
D. nominal interest rates are what lenders receive and real interest rates are what borrowers pay.
Answer: A
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The above table shows the marginal benefit from submarines for the only two citizens of a country. Suppose submarines cost $175 a piece. Politician A proposes 2 submarines while politician B proposes 4
Assuming that both Bobby and Katie pay one half of the resulting taxes and neither is rationally ignorant, which politician will win the election? A) A because she offers voters a lower tax bill. B) A because she offers voters a greater net benefit. C) B because she offers voters a greater total benefit. D) B because she offers voters more submarines.
To explain the existence of excess capacity, Keynes argued that
A) prices and wages are flexible, and eventually markets would go back to equilibrium. B) the long run average cost curve should not occur at the full employment level. C) the aggregate demand curve can be manipulated by advertising. D) prices and wages are inflexible in the downward direction.
Disposable personal income measures the after-tax income received by households
a. True b. False Indicate whether the statement is true or false
The process of holding a stock and accruing a further return over the second year is called
a. interest b. making money c. interest plus (+) d. compounding e. stock holding