If an inflation forecast is based on expected monetary growth, it is likely to be

The presence of large sunk costs often serves as a naturally imposed barrier to entry

a. True b. False Indicate whether the statement is true or false

You are given the following information about the economy: the nominal interest rate = 8%; the real rate of interest = 6%. The inflation premium is

A. 14%. B. 2%. C. 8%. D. 6%.