The nominal interest rate is 6 percent and the inflation rate is 3 percent. What is the real interest rate?

a. 9 percent
b. 2 percent
c. 18 percent
d. 3 percent

d

Economics

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What is the present value of $100 one-year from now at an interest rate of 6%?

A) $94 B) $107 C) $97.09 D) $3

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If the dollar depreciates in value relative to foreign currencies, aggregate:

A. supply and aggregate demand decrease. B. demand decreases. C. supply and aggregate demand increase. D. demand increases.

Economics