Multiple Choice
If the real rate of return is 0 percent, and the inflation rate is 3 percent, then the nominal interest rate must be:
A) 0 percent.
B) 3 percent.
C) −3 percent.
D) 6 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q87: Why is deflation such a problem?<br>A) It
Q88: The classical theory of inflation:<br>A) describes a
Q89: According to the quantity theory of money,
Q90: If an economy produces 3,000 units of
Q91: In the long run, an increase in
Q93: When real rates of interest are negative,
Q94: When an economy is experiencing a negative
Q95: The nominal interest rate is:<br>A) the everyday
Q96: In order to calculate the real interest
Q97: If the real rate of return is