People who took out mortgages at the height of U.S. inflation in 1981:
A. paid much higher real interest rates than expected since inflation fell dramatically after 1981.
B. paid much lower real interest rates than expected since inflation fell dramatically after 1981.
C. paid much higher real interest rates than expected since inflation rose dramatically after 1981.
D. paid much lower real interest rates than expected since inflation rose dramatically after 1981.
Ans: A. paid much higher real interest rates than expected since inflation fell dramatically after 1981.
You might also like to view...
Downward wage rigidity is likely to:
A) decrease unemployment. B) decrease wage rates. C) increase wage rates. D) increase unemployment.
What is the difference between labor-saving technology and labor-complementary technology?
What will be an ideal response?
Suppose that the one-year forward price of euros in terms of dollars is equal to $1.113 per euro. Further, assume that the spot exchange rate is $1.05 per euro, and the interest rate on dollar deposits is 10 percent and on euro it is 4 percent
Under these assumptions A) interest parity does not hold. B) interest parity does hold. C) it is hard to tell whether interest parity does or does not hold. D) Not enough information is given to answer the question. E) interest parity fluctuates.
A monopolist sells to two consumer groups, students and non-students
Demand for students: Q = 500 - 1/2P Demand for non-students: Q = 750 - 2P MC = 20 Find the profit-maximizing price/quantity combination in each market if the groups can be separated.