Suppose the real interest rate in the economy is 3% and the nominal interest rate is 6%, what is the current inflation rate?
a. 18%
b. 9%
c. 2%
d. 3%
e. 2.5%
d
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Which of the following statements is NOT compatible with explanations for why peak-load pricing is more profitable than charging a single price?
A) Consumer willingness to pay for the product varies a lot across different time periods. B) Marginal cost of production is much higher under peak demand. C) Marginal revenue changes a lot across different time periods. D) Marginal revenue must be the same across different time periods.
According to economic analysis, while making a decision, an individual compares the benefits expected from one option with the benefits expected from other options
a. True b. False Indicate whether the statement is true or false
If a price-discriminating monopolist sells the same product in two markets but charges a higher price in market X and a lower price in market Y, the pricing difference indicates that demand is:
A. the same in both markets X and Y. B. less elastic in market Y than market X. C. less elastic in market X than market Y. D. more elastic in market X than market Y.
Consider Figure 12.5. Not confessing is a dominant strategy for:
A. player A but not player B. B. player B but not player A. C. both players. D. neither player.