During the 1990s, Japan experienced periods of deflation and nominal interest rates that approached zero percent. Why would anyone lending money agree to a nominal interest rate of almost zero percent?
What will be an ideal response?
With deflation, the real interest rate exceeds the nominal interest rate. Lenders were making their decisions based on the higher real interest rate, not the nominal interest rate of almost zero percent.
Economics
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NAFTA benefited Canadian consumers because:
a. of higher wages and more travel opportunity. b. of lower wages but also lower taxes. c. of lower prices but lower quality. d. of lower prices and increased variety.
Economics
In an open economy, total income is the sum of exports and imports
Indicate whether the statement is true or false
Economics