If the nominal interest rate in an economy is 6 percent and the rate of inflation in the economy is 4 percent,the real interest rate in the economy is ________.
A) 2 percent
B) 24 percent
C) 1.5 percent
D) 10 percent
Correct Answer:
Verified
Q6: Which of the following statements is true?
A)
Q7: The additional payment a borrower has to
Q8: The annual price of a $1 loan
Q9: If an individual borrows $100 at an
Q10: If the nominal interest rate is greater
Q12: Economic agents who borrow funds are known
Q13: Consider two economies: A and B.The nominal
Q14: Credit is _.
A) the loan that a
Q15: The real interest rate is equal to
Q16: Assuming all else equal,a rise in the
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