Multiple Choice
Suppose the nominal interest rate is 10 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 6 percent. At the end of the year, you have earned:
A) a real rate of return of 4 percent.
B) an increase in your purchasing power.
C) a nominal increase in your savings of $100.
D) All of these statements are true.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: A period when overall inflation rates are
Q3: Headline inflation:<br>A) includes all of the goods
Q4: Historically, velocity has been:<br>A) relatively stable, though
Q5: The net result of deflation is to:<br>A)
Q6: When a central bank aggressively tries to
Q7: The short-run Phillips Curve is _, and
Q8: The velocity of money is:<br>A) how many
Q9: The natural rate of unemployment:<br>A) occurs at
Q10: In the case of zero inflation, during
Q11: The notion that the value of money