Suppose the rate of inflation rate is two percent and the nominal interest rate is five percent. According to the Fisher Effect, an increase in the inflation rate to six percent should cause the nominal interest rate to increase from five percent to _____ in the long run
Fill in the blank(s) with correct word
nine percent
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Which of the following statements is FALSE?
A) Saving helps create economic growth. B) Economic freedom requires property rights. C) Free international trade helps create economic growth. D) Improvements in quality of education are important for economic growth. E) Faster population growth is the key to growth in real GDP per person.
Explain why economists believe that an individual who commits a crime does so acting in his/her own self-interest
A financial services company may hire a professional athlete as a spokesperson because:
A. does not serve as a credible signal to consumers, since athletes are not often financial service experts. B. can signal to customers that the services are worse than they actually are. C. this can act as a credible signal to consumers that the company has a high quality product they are willing to spend money advertising. D. the athlete is more informed about financial services than the general public.
In the United States economy, what is the basic measure of money?
A. wealth B. M1 C. disposable income D. commodities