The real rate of return on holding cash ________ inflation is correctly anticipated.

A. is higher when
B. equals the nominal interest rate when
C. is lower when
D. does not depend on whether

Answer: D

Economics

You might also like to view...

The business cycle is measured by the

a. production of goods and services. b. number of people employed. c. the interest rate. d. Both a and b are correct.

Economics

One concern of those who oppose the central bank targeting inflation at zero is that reducing inflation is costly. What is the cost of reducing the inflation rate?

Economics