Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, what was the real interest rate you paid?
A) 16 percent B) 12 percent C) 8 percent D) 6 percent
C
You might also like to view...
The investment schedule shows the
A. amounts business firms collectively intend to invest at each possible level of real GDP. B. positive relationship between the expected rate of return and the quantity of investment demanded. C. rate of interest that business firms must pay when they make investments in capital goods. D. inverse relationship between the expected rate of return and the quantity of investment demanded.
The Bureau of Labor Statistics does not count discouraged workers as unemployed. Suppose discouraged workers were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change
What will be an ideal response?
If average total costs are $40 and average variable cost are $20 at 10 units of output and the marginal cost of the 11th unit is $30, what is the average total cost of 11 units?
a. $23.00 b. $20.09 c. $30.00 d. $39.09
All of the following are tools available to the Fed for controlling the money supply except
A. The discount rate. B. Open market operations. C. The reserve requirement. D. Taxes.