Suppose that you took out a $1000 loan in January and had to pay $75 in annual interest. During the year, inflation was 6 percent. Which of the following statements is CORRECT?
What will be an ideal response?
The nominal interest rate is 7.5 percent and the real interest rate is 1.5 percent.
Economics
You might also like to view...
Which of the following statements is correct?
a. The human-capital theory of education could be called a productivity-enhancing theory. b. The human-capital theory of education could be called a productivity-revealing theory. c. The signaling theory of education could be called a productivity-enhancing theory. d. The signaling theory of education has been disproven by a number of prominent economists.
Economics
It would be appropriate to use expansionary fiscal policy during prolonged periods of
A. high inflation. B. rapid economic growth. C. high unemployment. D. high budget deficits.
Economics