The nominal interest rate is 5 percent and the real interest rate is 3 percent. What is the inflation rate?
a. 8 percent
b. 15 percent
c. 2 percent
d. 1.7 percent
c
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Dividend refers to
A. a corporation’s regular payments to lenders. B. a payment of part of the corporation’s profits that are distributed to stockholders. C. a lender’s legal claim on the assets of a bankrupt corporation. D. a prepayment of a corporation’s legal obligation.
Why do price levels increase when government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?
A pegged rate system that includes policy cooperation is usually:
A) difficult to maintain. B) a good compromise for nations who want exchange rate stability, stable output, and some flexibility. C) not a good bet for nations who are large trading partners. D) administered by large private banks.
If the federal budget deficit is falling, the national debt will
A. be rising at an increasing rate. B. be rising at a decreasing rate. C. remain at the same level. D. be falling at an increasing rate.