If the nominal interest rate is 5 percent and there is no inflation, then the real interest rate:
A. exceeds 5 percent.
B. is less than 5 percent.
C. is 5 percent.
D. is zero.
Answer: C
You might also like to view...
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The big tradeoff between equality and efficiency exists because
A) redistribution uses resources and weakens incentives to work. B) redistribution uses resources and strengthens incentives to work. C) redistribution creates additional resources and weakens incentives to work. D) redistribution creates additional resources and strengthens incentives to work.
Why do poor countries often have lower rates of economic growth than richer countries?
What will be an ideal response?
What characteristic of a competitive market has made the "long run pretty short" in the market for iPhone apps?
A) few firms in the market B) identical products C) ease of entry D) blocked entry