Suppose that your bank pays 5 percent interest on your savings account balance. Is this the nominal or real interest rate? What would be your real interest rate?

This is the nominal interest rate. The real interest rate would be the 5 percent minus the rate of inflation.

Economics

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Is the "international adjustment mechanism" for fixed and flexible exchange rates the same? Discuss briefly

What will be an ideal response?

Economics

Which multilateral institution serves as the lender of last resort?

What will be an ideal response?

Economics