If the nominal interest rate was 4 percent, the expected real interest rate was 3 percent, and the realized real interest rate was 5 percent, then the expected inflation rate was ____ and the realized inflation rate was ____.

A. ?1 percent; 1 percent
B. ?1 percent; 2 percent
C. 1 percent; ?1 percent
D. 1 percent; 1 percent


Answer: C

Business

You might also like to view...

Describe the three lines of power in organizations and provide examples.

What will be an ideal response?

Business

Even if you are not making a formal presentation, you are on stage when you communicate with others in the workplace

Answer the following statement true (T) or false (F)

Business

A suit demanding money damages is a matter of equity

Indicate whether the statement is true or false

Business

Which of the following is true of simple random sampling?

A. It produces unbiased estimates of a target population's characteristics. B. It eliminates the need to identify all sampling units. C. It does not require the sampling units to be given any special code prior to drawing a sample unlike systematic random sampling. D. It is less costly when compared to systematic random sampling because it can be done quickly. E. It requires that a defined target population be ordered in some way, usually in the form of a customer list, taxpayer roll, or membership roster.

Business