You have a $500 saving bond. If the nominal interest rate is 10 percent, then the inflation rate must be
A) 10 percent if in real terms you earned $200.
B) 10 percent if in real terms you earned $100.
C) zero, otherwise you would sell the bond.
D) 4 percent if in real terms you earned $30.
E) 4 percent if in real terms you earned $70.
D
Economics
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The worst recessions after World War II occurred
A) during 1945-1946 and 1973-1975. B) during 1957-1958 and 1973-1975. C) during 1973-1975 and 1981-1982. D) during 1945-1946 and 1981-1982.
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If the Chinese government were to begin selling large quantities of its dollar-denominated assets, how might that affect China's economy and the U.S. economy?
What will be an ideal response?
Economics