If the bank agrees to make a loan at a 7 percent interest rate and the inflation rate is 3 percent, then 4 percent is the ________ rate.
A. nominal interest
B. real interest
C. disinflation
D. hyperinflation
Answer: B
You might also like to view...
When price was 5, quantity demanded was 10. When price increased to 6, quantity demanded decreased to 9. Therefore, when price increased, total revenue
A. decreased from 54 to 50, indicating that demand is inelastic. B. decreased from 54 to 50, indicating that demand is elastic. C. increased from 50 to 54, indicating that demand is inelastic. D. increased from 50 to 54, indicating that demand is elastic.
Economies of scale can be caused by all of the following except
a. price discounts for large scale purchases b. labor specialization c. use of more productive equipment d. increases in the firm's average total cost e. more cost-efficient methods of marketing
When the money supply increases
a. interest rates fall and so aggregate demand shifts right. b. interest rates fall and so aggregate demand shifts left. c. interest rates rise and so aggregate demand shifts right. d. interest rates rise and so aggregate demand shifts left.
For a price-taking firm, marginal revenue
A. is the addition to total revenue from producing one more unit of output. B. decreases as the firm produces more output. C. is equal to price at any level of output. D. both a and b E. both a and c