If the realized real interest rate in an economy is 6%, the nominal interest rate is 8%, and the expected inflation rate is 8%, then the realized inflation rate in the economy is:

A) 2%. B) 4%. C) 8%. D) 6%.

A

Economics

You might also like to view...

On the production possibilities curve, a movement between points that yields a loss of one good in order to raise the output of another good will maintain efficient production

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

Economics

Since monopolists that practice price discrimination generally increase market output, compared to a monopoly that charges a single price, practicing price discrimination generally leads to a smaller deadweight loss

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

Economics