If the purchasing power of your savings is increasing over time, we know that:
A. the real rate of interest is positive.
B. the inflation rate must be less than the nominal rate of interest.
C. if the nominal interest rate is zero, inflation must be negative.
D. All of these statements are true.
Answer: D
You might also like to view...
Government expenditures on goods and services have an indirect impact on the aggregate demand, while taxes have a direct impact
a. True b. False Indicate whether the statement is true or false
Foreign direct investment generally leads to technological advancements in poorer countries
a. True b. False Indicate whether the statement is true or false
Americans are creating an enormous amount of solid waste daily—over 4 pounds per person per day. How is the United States coping with this extraordinary problem?
What will be an ideal response?
Which of the following will reduce the velocity of circulation of the money stock?
A. The inflation rate increases. B. The interest rate falls. C. Credit cards are used more frequently. D. More employees are paid once a week instead of once a month.