The distinction between real and nominal interest rates:
A. makes it easier to assess the impact of monetary policy.
B. does not affect the assessment of monetary policy since real interest rates are observable.
C. makes it harder to assess the impact of monetary policy.
D. does not affect the assessment of monetary policy since nominal interest rates are observable.
Answer: C
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When an asset is traded for goods and services it is serving the function of a ________
A) store of value B) loanable fund C) unit of account D) medium of exchange
The suggestion that a seller will try to set price based on "what the market will bear" is explicit recognition of the constraint imposed by:
A) the firm's marginal cost of production. B) the price elasticity of demand for that item. C) the firm's competitors. D) the need for most firms to earn positive economic profits over time if they are to remain in business.