If the inflation rate is 2% and the real interest rate is 1%, then the nominal interest rate is around
A. 1%.
B. 3%.
C. 2%.
D. -1%.
Answer: B
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The productivity curve is a relationship between ________ and ________
A) real GDP per hour of labor; capital per hour of labor B) real GDP per hour of labor; capital C) capital per hour of labor; labor per hour of capital D) real GDP; hours of labor E) real GDP; capital
The above table shows the total product schedule for the campus book store. If employees are paid $6 per hour, assuming there are no other variable costs, then the average variable cost of selling books will reach its minimum at
A) 58 books sold per hour. B) 59 books sold per hour. C) 73 books sold per hour. D) 83 books sold per hour.
One way the government decides how to pay for public goods is:
A. how easy it is to exclude people who don't pay. B. determining who uses the good the most and increasing their property taxes. C. comparing individual's marginal benefits of the good. D. polling the public about the most appropriate funding measures.
For this question, assume that the Fed is expected to respond to any event by keeping output constant (i.e., equal to its initial level). An unexpected increase in taxes will cause
A) stock prices to fall. B) stock prices to rise. C) no change in stock prices. D) an ambiguous effect on stock prices.