If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent, the expected real interest rate is _____
a. 13 percent
b. ?5 percent
c. 9 percent
d. ?13 percent
e. 5 percent
e
You might also like to view...
If an investment of $100 million from the United Kingdom is made in the United States, the $100 million is listed as a ________ entry in the ________ account
A) negative; current B) negative; capital and financial C) positive; capital and financial D) positive; official settlements E) positive; current
The interest rate you typically earn on a deposit at a bank:
A. represents the price of your loan. B. represents the risk of investing. C. is the opportunity cost to you of lending money. D. is the opportunity cost to a bank of lending money.
Which of the four countries has an opt-out and chose not the adopt euro yet:
a. Germany b. Denmark c. France d. Austria
In the production of goods and services, trade—offs exist because
A) not all production is efficient. B) society has only a limited amount of productive resources. C) buyers and sellers often must negotiate prices. D) human wants and needs are limited at a particular point in time.