The nominal rate of interest is
A) the rate observed in the market that includes an inflation premium.
B) not the rate observed in the market.
C) not adjusted for inflation.
D) expressed in dollars from the chosen base year.
Answer: A
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International trade has the potential to
A. increase the availability of goods and services to those nations that export more than they import. B. increase the availability of goods and services to those nations that have an absolute advantage in the production of a good or service. C. increase the availability of goods and services to all nations. D. decrease the availability of goods and services to all nations.
Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the labor supply increases due to immigration, the new equilibrium is most likely to be
A) point h. B) point f. C) point d. D) point e. E) point b.