Suppose you place $10,000 in a retirement fund that earns a nominal interest rate of 8 percent. If you expect inflation to be 5 percent or lower, then you are expecting to earn a real interest rate of at least:

Briefly explain how a U.S. company that exports to Europe can hedge against exchange rate risk

What will be an ideal response?

When the economy is at full employment __________ interest rates are __________ by an expansionary monetary policy if inflationary expectations are generated

A) real; decreased B) real; not changed C) nominal; decreased D) nominal; not changed