You have a mortgage that has a nominal interest rate of 7%. The inflation rate is 3.5%. Your real interest rate is ________.
What will be an ideal response?
You might also like to view...
Refer to Table 12-4. If the market price is $45 the firm will produce
A) 60 units. B) 80 units. C) 100 units D) 120 units
GoFresh and Heptol are leading shower gel producers in a market. The two firms are large enough to cover almost the entire market demand. A new firm that is comparatively smaller wants to enter the market. In the given scenario, which of the following statements is most likely to be true? a. The new firm cannot enter the market because it does not fulfill the legal requirements
b. The new firm cannot enter the market because its product is not liked by the consumers. c. The new firm cannot enter the market because it is technologically difficult for it to produce shower gel. d. The new firm cannot enter the market because it is too small to spend a considerable amount of money on advertising.
An increase in the price of dairy products produced domestically will be reflected in
a. both the GDP deflator and the consumer price index. b. neither the GDP deflator nor the consumer price index. c. the GDP deflator but not in the consumer price index. d. the consumer price index but not in the GDP deflator.
The largest source of tax receipts for the government is
A. personal taxes. B. contributions for social insurance. C. taxes on production and imports. D. corporate taxes.