The real rate of interest is 4% and the anticipated rate of inflation is 1%. What is the nominal rate of interest?
A) 1%
B) 3%
C) 4%
D) 5%
Answer: D
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Jay set up his hot dog stand near the business district. His total variable cost includes the
A) annual insurance for the hot dog stand. B) cost of buying the hot dog stand. C) cost of the hot dogs and condiments. D) interest he pays on the funds he borrowed to pay for advertising. E) revenue he gets when he sells his first hot dog each day.
What did Robert Gilpin mean when he wrote that modern realists know little about international politics that Thucydides did not know in the fifth century BCE?
a. Compared to those times, the twentieth century had been a revolutionary period. b. The world still revolved around political ideologies, theories, and arguments. c. Much had changed, but the underlying nature of international politics had not changed. d. Modern realists had not advanced the body of knowledge in political science very much.
A company has an investment project that will cost $2 million today and yield a payoff of $3 million in 5 years. If the interest rate is 9%, should the firm undertake the project? Show evidence to support your answer
A pure monopoly firm will never charge a price in the inelastic range of its demand curve because lowering price to get into this region will:
A. Increase total revenue, increase total cost, and decrease profit B. Decrease total revenue, increase total cost, and decrease profit C. Increase total revenue, decrease total cost, and decrease profit D. Decrease total revenue, total cost, and profit