If inflation is anticipated to be 5 per cent during the next year,while the real rate of interest for a one-year loan is 5 per cent,then what should the nominal rate of interest be for a risk-free one-year loan?
A) 25 per cent.
B) 10 per cent.
C) 5 per cent.
D) none of the above.
Correct Answer:
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Q52: Monetary policies directed toward increased economic growth
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Q54: An increase in the money supply,all else
Q55: During an economic expansion,we would expect:
A)interest rates
Q56: If the supply of loanable funds decreases
Q57: An increase in consumer saving caused by
Q58: The nominal rate of interest is:
A)the unadjusted
Q59: Fisher's equation states that:
A)the nominal interest rate
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Q62: The current 1-year Treasury rate is 10
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