If the bank advertises 6 percent annual interest rate on a one-year certificate of deposit and you anticipate the rate of inflation to rise to 3 percent during the year, then the real rate of interest on the certificate of deposit is
A) 9 percent.
B) 6 percent.
C) 3 percent.
D) 2 percent.
C
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If the nominal gross domestic product (GDP) for a year is $5.4 trillion, and the real gross domestic product (GDP) for the same year is $3.6 trillion, the GDP price index is _____
a. 0.667 b. 150 c. 66.67 d. 50 e. 33.33
Without product differentiation, it would be very difficult for firms to develop brand loyalty
Indicate whether the statement is true or false
Refer to the diagram. At P 1 , this firm will produce:
A. 47 units and break even.
B. 47 units and realize an economic profit.
C. 66 units and earn only a normal profit.
D. 24 units and earn only a normal profit.
If a price ceiling of $8 were placed in the market in the graph shown:
A. some surplus is transferred from consumer to producer. B. all consumers are made better off. C. some surplus is transferred from producer to consumer. D. all producers are made better off.