Multiple Choice
People know that the inflation rate will decrease from 7 percent to 3 percent. As a result
A) the nominal interest rate falls by 4 percentage points.
B) the nominal interest rate is constant.
C) the nominal interest rate rises by 4 percentage points.
D) the nominal interest rate equals 3 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Q156: If the nominal interest rate is 8
Q157: When the inflation rate is zero, the<br>A)
Q158: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q159: An increase in the _ is an
Q160: Suppose the market for loanable funds is
Q162: The capital stock increases whenever<br>A) gross investment
Q163: The quantity of _ by households will
Q164: _ increases households' saving.<br>A) A decrease in
Q165: People expect an inflation rate of 5
Q166: In 2008, Germany had a budget deficit