If the nominal interest rate is 6 per cent and the inflation rate is 3 per cent, the real interest rate is
A) 3 per cent.
B) 6 per cent.
C) 9 per cent.
D) 18 per cent.
E) None of these answers.
Correct Answer:
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Q22: An inflation tax
A) Is usually employed by
Q23: With the value of money on the
Q24: The Fisher effect is
A) The one-for-one adjustment
Q25: If the money supply grows 5 per
Q26: The nominal demand for money
A) Does not
Q28: An example of a real variable is
A)
Q29: In the quantity theory of money
A) Prices
Q30: The velocity of money is
A) Highly unstable.
B)
Q31: The quantity equation states that
A) Money ×
Q32: Countries that employ an inflation tax do
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