Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest. If the inflation rate was 7%, what was the real interest rate you paid?
A) 17 percent
B) 10 percent
C) 7 percent
D) 3 percent
Answer: D
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The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest 40 percent of the population?
A) 20 percent B) 30 percent C) 55 percent D) 70 percent
An increase in population shifts the production possibilities frontier inwards over time
Indicate whether the statement is true or false
Relative to a competitive labor market, monopsony
A) is also efficient. B) creates a deadweight loss because it pays an excessive wage. C) creates a deadweight loss because the wage is below the marginal revenue product of labor. D) creates a deadweight loss because the wage is above the marginal revenue product of labor.
From society's point of view, a monopolist produces too little because price
A. is less than marginal cost. B. exceeds marginal cost. C. exceeds average cost. D. is less than average cost.