Suppose that over the past year, the real interest rate was 6 percent and the inflation rate was -2 percent. It follows that
a. the dollar value of savings increased at 4 percent, and the purchasing power of savings increased at 6 percent.
b. the dollar value of savings increased at 4 percent, and the purchasing power of savings increased at 8 percent.
c. the dollar value of savings increased at 8 percent, and the purchasing power of savings increased at 4 percent.
d. the dollar value of savings increased at 8 percent, and the purchasing power of savings increased at 6 percent.
a
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The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. The firm's value of marginal product of labor for the third worker is equal to
A) $264. B) $48. C) $8. D) $6.
Perfect competition is characterized by numerous products with well-known brand names.
Answer the following statement true (T) or false (F)
We interpret the term loanable funds to mean the flow of resources available to fund private investment
a. True b. False Indicate whether the statement is true or false
Firms in perfectly competitive markets typically have:
A. one profit-maximizing level of output. B. two profit-maximizing levels of output to choose from. C. several profit-maximizing levels of output to choose from. D. no chance of maximizing profits, since they have no control over market price.