The real risk-free interest rate is equal to:
a. The difference between the nominal interest rate and expected inflation.
b. The tradeoff that society must make between consuming now and consuming later.
c. The rate at which the International Monetary Fund borrows from the World Bank.
d. The rate at which banks lend to their best customers (i.e., lowest credit risk).
e. None of the above is correct.
.B
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Although the Fed professed employment of ________ targeting during the 1970s, its behavior suggests that it emphasized ________ targeting
A) free-reserve; interest-rate B) interest-rate; monetary aggregate C) monetary aggregate; interest-rate D) free reserve; monetary aggregate
The price of one nation's currency in terms of the currency of another nation is called the
A) IMF rate. B) fed funds ratio. C) exchange rate. D) discount rate.
Indifference curves are typically shaped like total utility curves
Indicate whether the statement is true or false
Resource prices will fall and short-run aggregate supply will increase if
a. current output exceeds the economy's full-employment level. b. current output is less than the economy's full-employment level. c. the actual rate of unemployment is less than the natural rate of unemployment. d. exports exceed imports.