If the nominal interest rate is 5 percent and the real interest rate is 2 percent, then the inflation premium is:
A. 8 percent.
B. 5 percent.
C. 3 percent.
D. 2 percent.
C. 3 percent.
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Define the term Nash equilibrium. In general, what can be claimed about the existence, uniqueness, and Pareto optimality of Nash equilibria? Support your answers with appropriate examples.
What will be an ideal response?
The addition to total output resulting from using one more unit of a productive resource is the
a. average product. b. marginal input. c. total product. d. marginal product.
In Chapter 10, the variable N can be regarded as total population, workers, work-hours, or "effective" work-hours, all proxies for each other if they are assumed to grow at the same rate
To define (Y/N) as the standard of living, N is particularly regarded as A) total population. B) workers. C) work-hours. D) "effective" work-hours.
Engel's law states that income elasticities are
a. negative for normal goods b. positive for inferior goods c. higher for food in industrialized nations than in nonindustrialized nations d. less than one for food e. usually about equal to one