Solved

You Lend $5,000 to a Friend for One Year at a Nominal

Question 199

Multiple Choice

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.The CPI over that year rises from 180 to 190.What is the real rate of interest you will earn?


A) 0%
B) 4.4%
C) 5.5%
D) 5.8%
E) 7.8%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q8: Counting part-time workers who are looking for

Q144: Unemployment arising from a persistent mismatch between

Q195: Table 5.7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Table 5.7

Q197: Which of the following is an example

Q198: Eliminating all structural unemployment would be good

Q200: The real rate of interest is<br>A)the nominal

Q201: If the number of unemployed workers is

Q202: Which of the following is a cost

Q203: Table 5.18 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Table 5.18

Q204: Fill in the missing values in the