Which of the following statements is correct?
a. If the inflation rate is steady at 5 percent, for example, the real and nominal interest rates will be equal.
b. An increase in the demand for goods now compared with goods in the future would cause the real interest rate to rise.
c. A "positive rate of time preference" means that an individual would rather save than consume.
d. During an extended inflationary period, the money (or nominal) interest rate will usually be lower than the real rate of interest.
B
You might also like to view...
Refer to Table 2-11. Does either China or South Korea have an absolute advantage and if so, in what product?
A) South Korea has an absolute advantage in both products. B) South Korea only has an absolute advantage in wheat. C) China only has an absolute advantage in digital cameras. D) China only has an absolute advantage in wheat.
When your outcomes depend on another's choices, asking ________ is the key to good decision making.
A. what the wants and constraints are of those involved B. what the trade-offs are C. how will others respond D. why everyone isn't already doing it