You put money into an account. One year later you see that you have 5 percent more dollars and that your money will buy 6 percent more goods
a. The nominal interest rate was 11 percent and the inflation rate was 5 percent.
b. The nominal interest rate was 6 percent and the inflation rate was 5 percent.
c. The nominal interest rate was 5 percent and the inflation rate was -1 percent.
d. None of the above is correct.
C
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Assume the following. In location A yearly temperatures range from -30°F to 100°F and in location B yearly temperatures range from 55°F to 75°F. In both locations the average yearly temperature equals 65°F. We can conclude that
A) temperature in location A has a higher variance. B) temperature in location B has a higher standard deviation. C) temperature in location A has a lower standard deviation. D) temperatures in both locations have the same standard deviation but different variances.
As the interest rate falls, the quantity
A) demanded of money falls. B) demanded of money rises. C) supplied of money rises. D) supplied of money falls.