If the CPI is 170 at the beginning of the year and 181 at the end, and a bank is paying a nominal interest rate of 6 percent, we see that
A) the real interest rate is positive and is less than 1 percent.
B) the interest nominal rate is negative.
C) the real interest rate is negative.
D) the real interest rate is positive and is larger than 1 percent.
E) the real interest rate is equal to zero.
A
You might also like to view...
In less developed economies more economic activity is "do-it-yourself"
Indicate whether the statement is true or false
From an economic perspective, when consumers leave a fast food restaurant because the lines to be served are too long, they have concluded the:
A. marginal cost of waiting is greater than the marginal benefit of being served. B. management is making an assumption that other things are equal. C. management is exhibiting irrational behavior by not maximizing profits. D. marginal cost of waiting is less than the marginal benefit of being served.
Which of the following is characteristic of a downturn in the business cycle?
A. Increased aggregate demand. B. Lower unemployment rates. C. Lower real output. D. None of the choices are correct.
If you reject a joint null hypothesis using the F-test in a multiple hypothesis setting, then
A) a series of t-tests may or may not give you the same conclusion. B) the regression is always significant. C) all of the hypotheses are always simultaneously rejected. D) the F-statistic must be negative.