If the inflation premium is 3% and the real interest on a loan is 4%, then the nominal interest rate is
A. 0.75%.
B. 1%.
C. -1%.
D. 7%.
Answer: D
You might also like to view...
The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________
A) 7.0 percent; 3.0 percent B) 3.0 percent; 5.5 percent C) 5.5 percent; 3.0 percent D) 6.0 percent; 4.0 percent
What is the most accurate statement about the fraction of the US population that lived in urban areas between 1800 and 1910?
a. The fraction of the US population that lived in urban areas grew steadily throughout the period. b. The fraction of the US population that lived in urban areas decreased steadily throughout the period. c. In 1910, about 85% of the US population lived in cities over 100,000 people. d. In 1800, more than half of the US population lived in towns over 2,500 people.
In 2009, we ran a ________ on our current account and a _______ on our capital account.
A. deficit; deficit B. surplus; surplus C. deficit; surplus D. surplus; deficit
A firm will begin to experience diminishing returns at the point where
A. marginal cost decreases. B. marginal product increases. C. marginal cost increases. D. Both B and C are correct.