Suppose that you took out a $1000 loan in January and had to pay $75 in annual interest. During the year, inflation was 6 percent. Which of the following statements is CORRECT?
A) The nominal interest rate is 7.5 percent and the real interest rate is 1.5 percent.
B) The nominal interest rate is 7.5 percent and the real interest rate is 13.5 percent.
C) The real interest rate is 7.5 percent and the nominal interest rate is 1.5 percent.
D) The real interest rate is 6 percent and the nominal interest rate is 7.5 percent.
A
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Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store the owners of the store should
a. Increase the prices on the goods sold in the store b. Increase the parking rates c. All of the above d. None of the above
The features of the U-Form of firm organization are
a. workers have trouble developing a high degree of functional expertise b. it is difficult for employees to share information across positions within a division c. employee evaluation is simplified by managers having similar skill sets than workers d. coordination across divisions is simple and does not take much management time