If the nominal interest rate is 4 percent and the real interest rate is -2.5 percent, then the inflation rate is
a. -6.5 percent.
b. -1.5 percent.
c. 1.5 percent.
d. 6.5 percent.
d
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Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160032040120202408080401601204060801600800Giovanni should specialize in the production of which good?
A. green beans B. corn C. both D. neither
An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
The asset demand for money and the rate of interest are:
a. Unrelated b. Directly related c. Both stable d. Inversely related
Say's law states that supply creates its own demand because
A. there is always a buyer for every good produced. B. supply prices are always equal to demand prices. C. prices are such that, in the short run, producers know exactly how much to produce. D. the act of producing creates an income sufficient to purchase all that is produced.