The real interest rate is the
a. interest rate corrected for inflation.
b. interest rate as usually reported by banks.
c. difference between the interest rate charged by banks on the loans they make and the interest rate paid by banks to their depositors.
d. difference between the average dividend yield on stocks and the average interest rate on bonds.
a
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Compared to workers in poor countries, workers in richer countries have
a. lower productivity but higher wages. b. higher productivity and higher wages. c. higher productivity but lower wages. d. the same productivity but higher wages.
Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses. Both hypotheses
a. suggest that, over time, the demand for unskilled labor has risen relative to the demand for skilled labor. b. suggest that, over time, the demand for skilled labor has risen relative to the demand for unskilled labor. c. emphasize the shrinking importance of international trade in recent years. d. emphasize the growing importance of women and teenagers in the workforce in recent years.