How much would the real rate of interest be if the nominal interest rate were 15 percent and the expected rate of inflation were 8 percent?
What will be an ideal response?
7 percent
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In the above figure, while moving along the line showing the relationship between household income and expenditure
A) household expenditures are held constant. B) household income is held constant. C) the interest rate is held constant. D) no variable is held constant.
Which of the following can best be characterized as a "Black Swan" event?
A) decline in stock prices due to a recession B) rising market interest rates as the Fed tightens monetary policy C) a financial crisis causing credit to dry up D) an individual firm unexpectedly filing for bankruptcy
Describe the differences between frictional, cyclical, and structural unemployment
We say that goods are substitutes when they:
A. change a consumer's preferences for a good or service. B. can replace something consumers typically purchase at a significantly lower price. C. are consumed together, so that purchasing one will make a consumer more likely to purchase the other. D. serve similar-enough purposes that a consumer might purchase one in place of the other.