The real rate of interest is the
A) nominal rate of interest minus the anticipated rate of inflation.
B) current rate actually paid by the borrower.
C) difference between the bank's lending and savings rates.
D) current rate which the government pays on its debt.
A
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Which of the following could cause an industry to be an increasing-cost industry?
a. The development of subindustries in response to industry growth. b. The factor-price effect. c. Identical break-even prices across firms. d. Substantial economies of scale in production.
Suppose a bank has $600,000 in deposits, a reserve ratio of 20 percent, and bank reserves of $240,000. This bank can make new loans in the amount of
A) $840,000. B) $360,000. C) $120,000. D) $12,000.
If the yen to dollar exchange rate moves from 105 to 115 yen per dollar, then the dollar has ________ and the yen has ________
A) appreciated; appreciated B) appreciated; depreciated C) depreciated; depreciated D) depreciated; appreciated
If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to
a. $4. b. $16. c. $20. d. $36.