Which of the following equations best represents the long-term real interest rate? The long-term real interest rate =
A) the short-term real interest rate + the term structure effect + the default-risk premium + the expected rate of inflation
B) the short-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation
C) the long-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation
D) the short-term nominal interest rate - the term structure effect - the default-risk premium + the expected rate of inflation
B
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By comparison to U.S. labor market policies, European labor market policies promote
A) greater unemployment and job security. B) slower real wage growth and greater income inequality. C) greater job opportunities for low-skill workers and greater bargaining power for workers. D) higher real minimum wages and slower real wage growth.
Between 1929 and 2005 in the United States, the Lorenz curve became:
a. less bowed outward. b. more bowed outward. c. a straight line. d. a downward-sloping curve.