If the money rate of interest is 9 percent and the real rate of interest 6 percent, the inflationary premium is

a. 3 percent.
b. 6 percent.
c. 9 percent.
d. 12 percent.

A

Economics

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What are federally chartered banks called?

A) federal banks B) Federal Reserve banks C) national banks D) central banks

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During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the

A) risk acceptance cost. B) lender's dilemma. C) default premium. D) financial accelerator.

Economics