Suppose a loan of $100 is made at a fixed nominal interest rate of 5% for one year. During the year, there is unexpected inflation of 7%. Which of the following is true?
a) The inflation has redistributed income from the lender to the borrower
b) The real rate of interest is 12%
c) The borrower will be obligated to repay $107 instead of $105
d) The real rate of interest is 2%
e) None of the above
a) The inflation has redistributed income from the lender to the borrower
Economics
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If the working age population is 200 million, 150 million are employed, and 6 million are unemployed, the unemployment rate is
A) 3.0 percent. B) 25.0 percent. C) 4.0 percent. D) 12.0 percent. E) 3.8 percent.
Economics
Economics, according to its definition, studies how people:
a. earn and spend money. b. invest in the stock and bond markets. c. make choices in the face of scarcity. d. supply goods in response to demand.
Economics