Solved

Prices Have Been Rising 8 Percent a Year for Ten

Question 19

Multiple Choice

Prices have been rising 8 percent a year for ten years.The nominal interest rate is 12 percent.The real rate of interest is

A) 20 percent.
B) 12 percent.
C) 8 percent.
D) 4 percent.

Related Questions

Q14: Deflation refers to the situation when<br>A)the inflation

Q16: Inflation can cause a misallocation of resources

Q17: Under which one of the following situations

Q18: Unanticipated negative inflation will create<br>A)losses for creditors

Q20: If the current price of a market

Q23: The unemployment rate will decrease when<br>A)the duration

Q41: When the automobile replaced the horse as

Q162: A lifeguard who is out of work

Q242: An example of a frictionally unemployed individual

Q372: The long-run trend in business activity is<br>A)