In the data, we observe that countries with high inflation rates tend to have high nominal interest rates. What does this imply, if anything, about real interest rates in countries with very high inflation rates?
What will be an ideal response?
The higher nominal interest rates are simply a reflection of high inflation rates. The real interest rates in these countries could be equal to (or even less than) those in low-inflation countries.
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To ensure that decision makers have enough information to make god decisions
a. Move information to those making the decisions b. Move decision making to those with the information c. All of the above d. None of the above
Answer the question based on the following information on the banking system. Deposits at the central bank = 200 U.S. Government Securities = 600 Checking Deposits = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 230 Borrowing from the central bank = 100 Cash in the Vault = 50 The reserve ratio on transactions deposits = 10% The banking system's excess reserves
equal: a. 0 b. 134 c. a multiple of 250 d. 1,584 e. None of the above is correct
In goods markets ________ and in factor markets ________
A) households sell to firms; firms sell to households B) firms sell to households; households sell to firms C) households sell to firms; households sell to firms D) firms sell to households; firms sell to households
Diseconomies of scale are associated with:
A. improved team spirit. B. decreasing per-unit costs. C. monitoring costs. D. the short run.