When the price of gas goes up and the demand for tires goes down, this means tires and gas are:

Economists use M2 to measure the amount of money that is regularly used in transactions

Indicate whether the statement is true or false

You borrow at a nominal interest rate of 10 percent. If the inflation rate is 4 percent, then the real interest rate is

A) 6 percent. B) 14 percent. C) the $10 in interest you have to pay. D) 16 percent. E) 2.5 percent.