Negative inflation rates benefit lenders because
A. the real interest rate is negative.
B. the nominal interest rate is negative.
C. the nominal interest rate is positive.
D. the real interest rate is positive.
Answer: D
Economics
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The European Monetary System (EMS) relied on the ______ to maintain fixed rates of exchange, but in 1992, several notable defections from the system created doubt that a monetary union could occur.
A) euro B) U.S. dollar C) the European currency unit (ECU) D) ERM
Economics
The Taylor rule is a recommendation of how
A) banks should determine worthy loan recipients. B) the Fed should set the required reserve ratio. C) the Fed should set the federal funds rate target. D) banks should securitize their debt.
Economics