Solved

If the Nominal Interest Rate Exceeds the Rate of Inflation

Question 74

Multiple Choice

If the nominal interest rate exceeds the rate of inflation, the real interest rate will

A) not be affected.
B) rise.
C) be greater than zero.
D) be less than zero.
E) fall.

Related Questions

Q69: Which of the following is an appropriate

Q70: Staggered wage and price setting<br>A)slows down the

Q71: Suppose the central bank decides to switch

Q72: When interest rates increase,<br>A)government purchases will increase

Q73: The flatter the aggregate expenditure line, the

Q75: Explain what will happen to the aggregate

Q76: A firm increases prices only if the

Q77: Assuming constant inflation, a shift of the

Q78: Unlike the demand for bananas in a

Q79: The equation for the real interest rate