If a lender wants a real return of 6 percent and she expects inflation to be 4 percent, which of the following is the correct nominal interest rate to charge?

a. 4 percent
b. 6 percent
c. 2 percent
d. 10 percent
e. -2 percent

D

Economics

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________ are short-term loans in which Treasury bills serve as collateral

A) Repurchase agreements B) Negotiable certificates of deposit C) Federal funds D) U.S. government agency securities

Economics

Ersatz Kreme will sell its filling to Hunky Donuts only if Hunky Donuts agrees not to buy filling from other suppliers. This is an example of

a. price discrimination b. exclusive dealing c. a tying contract d. interlocking directorates e. a trust

Economics