The nominal interest rate is 7 percent and the expected inflation rate is 4 percent. The real interest rate is:
A) 10 percent.
B) -2 percent.
C) 3 percent.
D) 4 percent.
C
Economics
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In order to work well, fiscal policy must be all of the following EXCEPT:
A. targeted. B. timely. C. tax-related. D. temporary.
Economics
If firms sell what they expected to sell, which of the following will be true?
A) Aggregate expenditure will be greater than GDP. B) Aggregate expenditure will be less than GDP. C) There is no unplanned change in inventories. D) Inventories will rise, and GDP and employment will fall.
Economics