Suppose a bank wants a 5% real return on its loans, and contemplates a 1% annual inflation rate. The bank should therefore charge a nominal interest rate of

A) 1%.
B) 4%.
C) 5%.
D) 6%.


D

Economics

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An exchange rate that is set by official government policy is called a ________ exchange rate.

A. nominal B. fixed C. real D. flexible

Economics

Individuals who are under the age of 16 can sometimes be out of work, but they are still not included among the unemployed

a. True b. False Indicate whether the statement is true or false

Economics

Predatory pricing occurs when

a. firms collude to set prices. Economists are certain this practice is profitable. b. firms collude to set prices. Economists are skeptical that this practice is profitable. c. A monopolist decreases its prices to maintain its monopoly. Economists are certain this practice is profitable. d. A monopolist decreases its prices to maintain its monopoly. Economists are skeptical that this practice is profitable.

Economics

The J-curve summarizes the phenomenon that occurs when import spending initially falls after a depreciation of a country's currency and then import spending later rises

Indicate whether the statement is true or false

Economics