Multiple Choice
If the real interest rate is 4 percent and the inflation rate is 3 percent, then the nominal interest rate is
A) -1 percent.
B) 1 percent.
C) 3.5 percent.
D) 7 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q92: The neoclassical theory of investment says both
Q93: The opportunity cost of funds is the
Q94: When individuals or firms make an investment,
Q95: If a project costs $800 today and
Q96: If you want to have $50,000 in
Q98: Both the nominal rate of interest and
Q99: Consider the following five investments. If the
Q100: Investment spending is countercyclical.
Q101: Which of the following is an example
Q102: If a project costs $3,500 today and