If the real interest rate is 5 percent and the nominal interest rate is 2 percent, this implies an expected inflation rate of
A) -7 percent. B) -3 percent. C) 3.5 percent. D) 7 percent.
B
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The resource most directly associated with profits is
a. land. b. labor. c. capital. d. enterprise.
A tax that is imposed at each stage of production is a
a. sales tax b. excise tax c. high-incidence tax d. value-added tax e. none of the above
How do economists view positive statements?
a. affirmative, justifying existing economic policy b. optimistic, putting the best possible interpretation on things c. descriptive, making a claim about how the world is d. prescriptive, making a claim about how the world ought to be
In the Case in Point on "The Monks of St. Benedict's," the Monks got out of the egg business largely because:
A) there was a large increase in the supply of eggs from other producers. B) of the increase in the price of chicken feed. C) the Pope forbade them from working on Sunday. D) a huge increase in the demand for eggs caused the price of eggs to increase, and their operation was too small to meet the demand.