Chloe has a $15,000 personal loan at a nominal interest rate of 8 percent. If the inflation rate is 3 percent, what is the real interest rate paid on the loan?
A) 2.67 percent B) 3 percent C) 8 percent D) 11 percent E) 5 percent
E
Economics
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How are market price, average revenue, and marginal revenue related for a perfectly competitive firm and why?
What will be an ideal response?
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When there are two large open economies, if desired international lending by the domestic country exceeds desired international borrowing by the foreign country, then
A) domestic saving must rise. B) domestic saving must fall. C) the world real interest rate must fall. D) the world real interest rate must rise.
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