If the real interest rate is 3 percent and the inflation rate is 2 percent, what is the nominal interest rate?
What will be an ideal response?
The nominal interest rate equals the real interest rate plus the inflation rate, or
(3 percent) + (2 percent) = 5 percent.
Economics
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The above table shows production combinations on a country's production possibilities frontier. What is the opportunity cost of one unit of Y when the production of good Y increases from 16 to 28 units?
A) 4 units of good X per unit of good Y B) 3 units of good X per unit of good Y C) 1/4 unit of good X per unit of good Y D) There is no opportunity cost when moving from one point to another along a production possibilities frontier.
Economics
If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be
A) greater than 100. B) less than 100. C) equal to 100. D) less than 0.
Economics