If an economy experiences deflation, the real interest rate
A) will be less than the nominal interest rate.
B) will be negative when the nominal interest rate is positive.
C) will be greater than the nominal interest rate.
D) will be equal to the deflation rate, so long as the nominal interest rate is positive.
Answer: C
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The government bailed out banks deemed too big to fail through all of the followings except:
A. increased government spending. B. fiscal policy. C. the Troubled Asset Relief Program, commonly known as TARP. D. breaking them to several entities.
A leftward shift of the demand curve results in: a. increase in equilibrium price
b. increase in quantity. c. decrease in both equilibrium price and quantity. d. decrease in quantity and an indeterminate equilibrium price.
In cases of natural monopoly, it is best to have only one firm producing all of the output in a market
a. True b. False Indicate whether the statement is true or false
Discuss specific cases that lead to an increase in the concentration and market power from deregulation.
What will be an ideal response?