Consider two economies: A and B. The nominal interest rate is the same in both economies, but the rate of inflation is higher in economy B. Which of the following statements will then be true?
A) The real interest rate will be the same in both economies.
B) The real interest rate will be higher in economy B.
C) The real interest rate will be higher in economy A.
D) Whether the real interest rate is higher in economy A or B will depend on the number of borrowers in both economies.
C
Economics
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Parallel markets is another term for:
a. government interventions. b. interbank trades. c. black markets. d. trade in goods and in services
Economics
Which of the following best describes a business cycle?
A. Regular fluctuations of prices. B. Periods of increasing and decreasing real GDP. C. Regular growth rate of consumer spending. D. The cyclical movement in interest rates.
Economics