Multiple Choice
If the real rate of return is 5 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:
A) 7 percent.
B) 3 percent.
C) −3 percent.
D) −7 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q6: The money, time, and opportunity used to
Q8: If unemployment is below the NAIRU, inflation
Q43: The aggregate price level is:<br>A) a measure
Q50: Temporary changes in the price level caused
Q52: Which measure of inflation best reflects changing
Q53: The quantity equation states:<br>A) M ×V =
Q55: An overall rise in prices in the
Q56: If the Fed doubled the money supply
Q57: The NAIRU:<br>A) is difficult to measure.<br>B) can
Q72: Most economists agree that modest inflation is