The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 4.6 percent
B) -1.8 percent
C) -3.2 percent
D) 3.2 percent
E) 1.8 percent
B
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A society’s decision to produce more tanks may require it to reduce the production of some cars.
Answer the following statement true (T) or false (F)
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:
A. then the policy was effective since consumers gained in surplus overall.
B. then the policy was ineffective since consumers gained in surplus overall.
C. then the policy was ineffective since consumers lost surplus overall.
D. then the policy was effective since consumers lost surplus overall.
An increase in planned investment will shift the
What will be an ideal response?
Economic profits are maximized at the point at which
A) marginal revenues equal marginal costs. B) accounting profit exceeds economic profit. C) total revenues are greater than total costs. D) accounting profits are equal to zero.