Assume you borrow funds to buy a new car at 10 percent interest and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent
If you are correct in your assumption, your real rate of interest on the car loan will be A) 2 percent.
B) 8 percent.
C) 10 percent.
D) 18 percent.
A
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How does real gross domestic product (GDP) differ from nominal GDP?
A) Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison. B) Nominal GDP controls for price changes, while real GDP does not. C) Real GDP controls for price changes, while nominal GDP does not. D) There is no difference between nominal GDP and real GDP.
Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The U.S. economy suddenly experiences a recession.
A. a. B. b. C. c. D. d.
The rate of growth of output per worker in the United States between 1985 and 2014 was approximately equal to which of the following?
A) 1.7% B) 3.8% C) 4.8% D) 5.8%
Perfectly competitive markets are responsive to the demand of consumers.
Answer the following statement true (T) or false (F)