By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later
During the year the CPI rose from 150 to 162, but he had thought the CPI would be at 159 by the end of the year. By Marks had expected the real interest rate to be ________, but it actually turned out to be ________. A) 8%; 1%
B) 6%; 3%
C) 3%; 1%
D) 1%; 3%
C
Economics
You might also like to view...
The dividend earned by a domestic resident on a stock owned in a foreign company is an example of a(n) ________
A) import by the domestic resident B) factor payment received from foreigners C) transfer payment received from foreigners D) export by the domestic resident
Economics
With rent controls, which of the following is most likely to occur?
A) decreased search activity B) black market activity C) a building boom D) a housing surplus
Economics