If both the real interest rate and the nominal interest rate are 3 percent, then the
A) inflation premium is zero.
B) real GDP must exceed the nominal GDP.
C) nominal GDP must exceed the real GDP.
D) inflation premium also is 3 percent.
Correct Answer:
Verified
Q109: Inflation affects
A)both the level and the distribution
Q110: Unanticipated inflation
A)reduces the real burden of the
Q111: Suppose that lenders want to receive a
Q112: Who is least likely to be hurt
Q113: Inflation is undesirable because it
A)arbitrarily redistributes real
Q115: (Consider This) Which of the following best
Q116: (Consider This) If wages were more downwardly
Q117: A lender need not be penalized by
Q118: If the nominal interest rate is 5
Q119: During a period of hyperinflation,
A)creditors gain because
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents