Suppose that the nominal interest rate increases while the expected inflation rate rises. Given this information, we know with certainty that the real interest rate
A) will not change.
B) will fall.
C) will fall, but only if the increase in the nominal rate is smaller than the increase in expected inflation.
D) will fall, but only if the increase in the nominal rate is greater than the increase in expected inflation.
E) none of the above
C
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Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a pound of beef in Argentina is
A) 2 gallons of wine. B) 3 gallons of wine. C) 0.5 gallons of wine. D) 0.33 gallons of wine.
Which of the following is true of unit banking?
a. It is the dominant form of banking in the United Sates. b. It occurs when national banks open interstate branch offices. c. It implies that every financial institution should maintain its account with the Federal Reserve. d. It occurs when a bank is not allowed to operate in more than one location. e. It refers to the monopolization of the banking industry.