If the bank returns $1,060 on the $1,000 deposited for a year during which inflation was 4 percent, the real interest rate is
A) 2 percent. B) 6 percent. C) -2 percent. D) 16 percent. E) 10 percent.
A
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
In the above table, what is average product when 4 workers are employed?
A) 12 B) 10 C) 11.5 D) 9.5
Everything else equal, if the Fed decided to fix the euro/dollar exchange rate, what would be the impact on the interest rate in the U.S. if the euro started to appreciate in value and why?
What will be an ideal response?
Increases in education are analogous to investments in capital.
Answer the following statement true (T) or false (F)