The difference between the money rate of interest and the real rate of interest is often called the
a. real balance effect.
b. prime interest rate.
c. inflationary premium.
d. discount rate.
C
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A decrease in demand and an increase in supply will lead to
A) an unambiguous decrease in quantity, but the effect on price is indeterminate. B) an unambiguous decrease in price, but the effect on quantity is indeterminate. C) unambiguous decreases in both price and quantity. D) unambiguous increases in both price and quantity.
Which of the following exchange rate policies uses a target exchange rate, but allows the target to change?
A) crawling peg B) flexible exchange rate C) fixed exchange rate D) moving target
Refer to Scenario 12.2. Suppose that the marginal cost increases such that:
MC = Q + 10 What is the profit maximizing level of output? A) 171.43 B) 120 C) 150 D) all of the above E) none of the above
What can a nation do to increase its economic growth? Why is economic growth among the major national economic goals of all countries?