If a lender desires to earn a return of 4 percent on a loan and the anticipated rate of inflation is 3 percent, the lender should charge a
A. Real interest rate of -1 percent.
B. Real interest rate of 1 percent.
C. Nominal interest rate of -7 percent.
D. Nominal interest rate of 7 percent.
Answer: D
Economics
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All of the following are types of decisions that can be made at the margin EXCEPT:
a) whether to grow beans or corn on a large farm b) whether or not to hire 100 new workers c) whether to leave early in the morning or late in the day for a trip d) whether or not to go on a vacation
Economics
Unemployment would decrease and prices would increase if
a. aggregate demand shifted right. b. aggregate demand shifted left. c. aggregate supply shifted right. d. aggregate supply shifted left.
Economics