If the CPI is 170 at the beginning of the year and 181 at the end, and a bank is paying a nominal interest rate of 6 percent, we see that
A) the interest nominal rate is negative.
B) the real interest rate is positive and is larger than 1 percent.
C) the real interest rate is negative.
D) the real interest rate is positive and is less than 1 percent.
E) the real interest rate is equal to zero.
Correct Answer:
Verified
Q24: Q25: When a good gets better from one Q26: The CPI is biased because it Q27: When firms decide how much labor to Q28: If your nominal income is $75,000 and Q30: The nominal wage rate is the Q31: The items included in the CPI are Q32: Since 1305, of the following centuries the Q33: The difference between nominal and real is Q34: Nominal GDP was $12.1 trillion and real
A)does not
A)average hourly
A)goods
A)nominal
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