Suppose that the nominal rate of interest is holding steady at 2 percent even as the anticipated rate of inflation rises. What is happening to the real rate of interest?
A) It is unchanged.
B) It is increasing.
C) It is decreasing.
D) It equals the nominal interest rate.
Answer: C
Economics
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The above figure shows a labor market with a minimum wage of $8 an hour. How many people are employed when the minimum wage is in place?
A) 40,000 B) 60,000 C) 80,000 D) fewer than 40,000 E) more than 80,000
Economics
Assume that the price elasticity of demand is ?2 for a certain firm's product. If the firm raises price, the firm's managers can expect total revenue to:
A. increase. B. decrease. C. remain constant. D. either increase or remain constant, depending upon the size of the price increase.
Economics