Careetha has just taken a fixed-rate loan and agreed to pay a nominal interest rate of 6 percent. If the inflation rate during the first year of the loan was 2 percent, her real interest rate that first year was
a. 6 percent
b. 8 percent
c. 4 percent
d. 12 percent
e. impossible to calculate without additional information
C
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Use the following table to answer the question below.Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500At a price of $15 per unit, which of the following would exist?
A. A surplus of 600 units. B. A shortage of 1,000 units. C. A surplus of 1,000 units. D. A shortage of 1,600 units.
Refer to the scenario above. Which of the following will happen in equilibrium?
A) Firm A will use Strategy X, and Firm B will use Strategy Y. B) Firm A will use Strategy Y, and Firm B will use Strategy X. C) Both the firms will use Strategy X. D) Both the firms will use Strategy Y.
The real interest rate measures the change in dollar amounts
a. True b. False Indicate whether the statement is true or false
The fact that, for most of its history, the Fed was reluctant to make discount loans actually:
A. pushed the discount rate above the target federal funds rate. B. at times was a destabilizing force for financial markets. C. proved to be a very stabilizing force for financial markets. D. resulted in banks in very strong financial shape as being the only ones borrowing from the Fed.