The real interest rate
A) equals the nominal rate minus the prime rate.
B) increases as inflation increases,ceteris paribus.
C) is what you really pay if you borrow versus what you think you are paying.
D) equals the nominal rate plus the rate of inflation.
E) equals the nominal rate minus the rate of inflation.
Correct Answer:
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Q41: The largest inflationary gap appeared
A) in the
Q42: If a depositor puts money in the
Q43: If interest rates rise,
A) firms are willing
Q44: The real interest rate in 2012 was
A)
Q45: The interest rate represents
A) the opportunity cost
Q47: You are thinking about building a new
Q48: If the federal government taxes the interest
Q49: The gap between the real and nominal
Q50: You borrow $10,000 today at a nominal
Q51: If interest rates rise but the quantity
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