Suppose people expect inflation to be 3 percent during the next several years. When the real interest rate is 5 percent, the money, or nominal interest rate, will be

a. 1 percent.
b. 4 percent.
c. 7 percent.
d. 8 percent.

D

Economics

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From the last five recessions, the mildest two were

A) 1975 and 2008-09 recessions. B) 1981-82 and 2008-09 recessions. C) 1990-91 and 2001 recessions. D) 1975 and 2001 recessions.

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Transfer prices

a. are an accounting devise to allocate the costs and revenues of intermediate products across divisions b. increase the 'profits' of the profit center producing the intermediate product when they rise c. decrease the 'profits' of the profit center using the intermediate product when they rise d. all of the above

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