18% nominal rate expected inflation rate at 12% what is real interest rate?
What will be an ideal response?
6% (18 - 12 = 6)
Economics
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Hedonic pricing is
A) the way that luxury goods are priced in a market economy. B) the tendency for the inflation rate to rise by greater and greater amounts. C) the tendency for nominal GDP to rise when the price level rises. D) the process of translating nominal GDP into real GDP. E) the process of pricing individual characteristics of a good or service.
Economics
When the foreign exchange market is in equilibrium, which of the following will be true?
a. imports + exports = net capital inflow b. imports - exports = net capital inflow c. imports - budget deficit = net savings d. imports + investment = exports + savings
Economics