If two parties to a loan contract agree that the lender should earn an 8 percent increase in purchasing power as a result of a loan and if the inflation rate is 5 percent, the nominal interest rate is _____
a. 13 percent
b. 8 percent
c. 5 percent
d. 3 percent
e. 1 percent
a
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The figure above shows depicts the marginal revenue and costs of a perfectly competitive firm. When 170 units are produced, the firm
A) would definitely shut down. B) would incur an economic loss. C) would increase its price. D) has total costs less than $2,720.
In 2014, China had accumulated approximately $3.8 trillion worth of reserve assets. These $3.8 trillion entered into China's 2014 balance of payments in the:
a. Trade balance. b. Balance on goods and services. c. The total amount did not enter into China's balance of payments. Only changes enter the balance of payments. d. Reserve Account.
Suppose that good X has few close substitutes and that good Y has many close substitutes. Which good would you expect to have more price elastic demand?
Antitrust authorities are least likely to take action against:
A. conglomerate mergers. B. horizontal mergers. C. interlocking directorates. D. price-fixing.