During periods of high inflation, such as the 1979–1980 period, the existence of usury laws may cause
A. nominal rates of interest to be above real rates.
B. negative nominal rates of interest.
C. negative real rates of interest.
D. real rates of interest to be above nominal rates.
Answer: C
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If a competitive market operates perfectly, it relies on
A) the number of people buying goods. B) the laws of supply and demand. C) how much people are willing to pay for the products. D) how many products can be produced for sale.
The producer price index focuses on price changes of domestically produced goods and includes services, construction, and imported goods
Indicate whether the statement is true or false
The largest component of the M1 measure of money is
A) currency. B) demand deposits. C) other checking deposits. D) money-market mutual funds.
A monopoly
a. can increase the price and increase output at the same time b. can charge any price it wants and still sell all of its output c. can sell any output it produces provided it accepts the market price d. must lower the price in order to increase output e. faces a perfectly elastic demand curve