Multiple Choice
Suppose you are earning 5 percent nominal interest on your savings account.If the rate of inflation is 3 percent,the real rate of interest you are earning is
A) 2 percent.
B) 3 percent.
C) 5 percent.
D) 8 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q12: If for some reason Americans wished to
Q93: What would happen in the market for
Q133: Which of the following best characterizes the
Q147: As the dollar depreciates, which of the
Q154: Who among the following is most likely
Q156: When equilibrium is present, if market conditions
Q174: Other things constant,a decrease in aggregate demand
Q176: In 1999,the nominal interest rate on a
Q195: Suppose, over the past year, the real
Q211: If prices in the United States rose,