Multiple Choice
If the nominal interest rate is 5.2 percent and expected inflation rate is 2 percent, the real interest rate equals
A) 7.2 percent.
B) 3.2 percent.
C) 5.0 percent.
D) 10.4 percent.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q73: Professor Simpson earns $80,000 per year teaching
Q74: As the interest rate (price for loanable
Q75: The return on capital is greater than
Q76: A firm is considering the purchase of
Q77: Many years ago someone developed an item
Q79: If the price for loanable funds is
Q80: There are two societies, A and B,
Q81: The only resource that cannot earn economic
Q82: The nominal interest rate is<br>A)determined by the
Q83: Profits may exist as the result of<br>A)uncertainty.<br>B)alertness