Nominal interest rates are higher than real interest rates as long as
A) expected inflation is positive.
B) the government taxes interest income.
C) inflation is expected to decline in the future.
D) long-term interest rates are higher than short-term interest rates.
A
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"In the loanable funds market, when there is a shortage of funds, the real interest rate will increase." Explain whether the previous statement is correct or not
What will be an ideal response?
The graph below represents the market for lychee nuts. The equilibrium price is $7.00 per bushel, but the market price is $5.00 per bushel
Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price of $7.00 and at the market price of $5.00.
Which of the following are barriers to entry?
A) economies of scale B) patents and copyrights C) control of resources D) all of the above
Which of the following factors has the most quantitative importance on the oversimplified multiplier formula?
a. it ignores variable imports b. it ignores price-level changes c. it ignores income taxes d. All of these equally affect the oversimplified multiplier formula