If the expected rate of inflation is zero, the real interest rate must
a. also equal zero.
b. be greater than the money (nominal) interest rate.
c. be equal to the money (nominal) interest rate.
d. be less than the money (nominal) interest rate.
C
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If no foreign residents owned any of the U.S. public debt, then it would be true that
A) U.S. residents would essentially owe the public debt to themselves. B) there would be no distributional consequences associates with he public debt. C) there would be no interest payments on the public debt. D) the public debt would naturally disappear over time.
The International Monetary Fund (IMF) was created to achieve each of the following goals EXCEPT
A) to help finance economic development in poor countries. B) to lend funds to countries having difficulties meeting their international payment obligations. C) to encourage convertibility of member countries' currencies. D) to supervise exchange-rate practices of member countries.
A fall in the price level produces a ________ the aggregate supply curve
A) rightward shift of B) movement upward along C) rightward shift of the aggregate supply curve and a movement downward along D) movement downward along E) leftward shift of
How were open market operations conducted prior to 1935?
A) They were carried out by the Federal Open Market Committee. B) They were carried out under the direction of the Secretary of the Treasury. C) They were carried out by the district Federal Reserve banks. D) They were carried out by the Banking Committee of the House of Representatives.