Which of the following statements is correct?
A. For a given real interest rate, the nominal interest must decrease if expected inflation
increases
B. For a given nominal interest rate, the real interest will decrease if inflation decreases
C. For a given expected inflation rate, the nominal interest must increase if real interest
decreases
D. For a given real interest rate, the nominal interest must increase if expected inflation increases
D. For a given real interest rate, the nominal interest must increase if expected inflation increases
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To ensure interest rate parity, a decrease in the interest rate on Euroyen relative to Eurodollar deposits will require a greater expected appreciation of the Japanese yen against the U.S. dollar
a. True b. False Indicate whether the statement is true or false
In a nation with a market economy, workers are free to:
a. choose their employer b. set their salary or wage c. take office supplies home d. take as many paid vacation days as they want.
Define autonomous consumption and explain how it is represented on a consumption function graph
What will be an ideal response?
Which of the following is most likely to reduce an individual's future spending?
A) Withdrawing money today B) Lending money today C) Paying back a loan in the future D) Withdrawing money in the future