The consumer price index was 200 in 2012 and 208 in 2013 . The nominal interest rate during this period was 9 percent. What was the real interest rate during this period?
a. 5.00 percent
b. 1.00 percent
c. 5.15 percent
d. 13.00 percent
a
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At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's gross investment for the year totaled
A) 1 machine. B) 2 machines. C) 3 machines. D) 6 machines.
If the U.S. inflation rate is 3 percent annually and the Japanese inflation rate is 1 percent annually, by what percent would the dollar price of the yen need to change according to purchasing power parity?
a. Appreciate by 2 percent b. Appreciate by 1 percent c. Depreciate by 2 percent d. Appreciate by 3 percent e. Depreciate by 1 percent
The adverse consequences of debt deflation are most evident ________
A) in the expansion of credit to high-risk borrowers B) on the balance sheets of nonfinancial businesses C) in a sharp decline in the real interest rate D) on the balance sheets of financial businesses
The circular flow model shows what households buy and sell in the resource market
Indicate whether the statement is true or false