Which of the following describes the correct relationship among the nominal interest rate, the real interest rate, and the inflation rate?
a. Real interest rate = nominal interest rate + inflation rate
b. Real interest rate = nominal interest rate - inflation rate
c. Nominal interest rate = real interest rate - inflation rate
d. Inflation rate = real interest rate - nominal interest rate
e. Inflation rate = nominal interest rate + real interest rate
B
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Some economists argue that the productivity slowdown of the mid-1970s to the mid-1990s was due to changes in oil prices that
A) increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. B) decreased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. C) increased production costs, causing firms to reorganize production to conserve energy, which increased output per worker. D) decreased production costs, causing firms to increase production, which reduced output per worker.
It is difficult to exclude individuals from the use of public goods and services
a. True b. False
Ceteris paribus, if the Fed reduces the reserve requirement, then:
A. Total reserves increase. B. Total deposits decrease. C. The lending capacity of the banking system increases. D. The money multiplier decreases.
A member of a corporate board of directors who is also a manager of the business is known as
A) a shareholder. B) an inside director. C) a partner. D) a corporate governor.