Suppose the money supply is set to grow at 7%, real GDP grows at 5%, and the expected real interest rate on Aaa corporate bonds averages 6%

Using the quantity theory of money and the Fisher equation, the nominal interest rate on the Aaa corporate bond should be A) -2%.
B) 2%.
C) 6%.
D) 8%.


D

Economics

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Refer to Figure 10-2. Which of the following statements is true?

A) Points a and b may not necessarily be the utility-maximizing quantities of ice cream cones at two different prices because we have no information on the consumer's budget or the price of other goods. B) Points a and b are derived independently of the utility-maximizing model. C) Points a and b are the utility-maximizing quantities of ice cream cones at two different prices of ice cream. D) Point a could be a utility-maximizing choice if the price is $3 but point b may not be because we have no information on the marginal utility per dollar when price changes.

Economics

Retirees are included in the Bureau of Labor Statistics' "not in the labor force" category

a. True b. False Indicate whether the statement is true or false

Economics

In the long run,

a. inputs that were fixed in the short run remain fixed. b. inputs that were fixed in the short run become variable. c. inputs that were variable in the short run become fixed. d. variable inputs are rarely used.

Economics

Consumption spending is:

A. negatively related to the overall price level. B. positively related to the overall price level. C. not correlated with the overall price level. D. equal to the overall price level.

Economics