If the real interest rate is 2 percent and inflation rate is 1 percent, what is the nominal interest rate?

A. 1 percent
B. 0 percent
C. 2 percent
D. 3 percent


Answer: D

Economics

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Changes in technology can increase labor productivity without there being any change in capital stock

Indicate whether the statement is true or false

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Which of the following is not one of the ways that banks reduce transaction costs for creditworthy borrowers?

a. coping with asymmetric information b. increasing risk through diversification c. enforcing loan contracts d. These are all ways banks reduce transaction costs

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