Multiple Choice
If the real interest rate was negative for a period of time, then
A) inflation is expected to exceed the nominal interest rate in the future.
B) inflation is expected to be less than the nominal interest rate in the future.
C) actual inflation was less than the nominal interest rate during that period of time .
D) actual inflation was greater than the nominal interest rate during that period of time .
Correct Answer:
Verified
Correct Answer:
Verified
Q32: At any point in time, households and
Q33: If foreign interest rates fall, foreign firms
Q34: The crowding-out effect occurs when<br>A)foreign investors crowd
Q35: According to the Fisher effect, when the
Q36: The quantity of loanable funds supplied is
Q38: Canada and the United States are major
Q39: Assume that foreign investors who have invested
Q40: The _ suggests that the market interest
Q41: When there are expectations of higher inflation
Q42: As a result of more favorable economic