The arithmetic difference between the nominal rate of interest and the expected rate of inflation is the
A. expected interest rate.
B. real interest rate.
C. implied interest rate.
D. contractual interest rate.
Answer: B
You might also like to view...
A bank is in the position to make loans when required reserves
A. are less than actual reserves. B. are greater than actual reserves. C. equal actual reserves. D. equal excess reserves.
Hector voluntarily left his job to search for a job in accounting, the field in which he has his bachelor's degree. Hector is considered
A) frictionally unemployed. B) not to be unemployed. C) structurally unemployed. D) cyclically unemployed.
If the short-run equilibrium position for a monopolistically competitive firm is P = $28.47, ATC = $22.13, and MC = MR = $17.47, which of the following statements is true?
a. The firm's economic profit is $11. b. Additional firms will be attracted into the industry. c. The firm could raise price and increase profit. d. The firm could lower price and increase profit. e. The firm is producing on the upward-sloping segment of its ATC curve.
If the government owns a nationalized firm, the prices are
a. set by an administrative agency of the government b. set by the free market c. high enough to make economic profits for the government d. determined by competition e. set to encourage efficiency and reduce waste