If the nominal interest rate on a one-year loan was 7%,the actual inflation rate over the year was 3% and the expected inflation rate over the year was 2.5%,then the expected real interest rate equals
A) 4) 5%.
B) 4) 0%.
C) 3) 75%.
D) 3) 5%.
Correct Answer:
Verified
Q100: In 1975,Richard Petty won the NASCAR race
Q101: Loretta agrees to lend Ted $500,000 to
Q102: Historical analysis of real interest rates in
Q103: If the expected inflation rate was 2.5%,the
Q104: You took out a loan one year
Q105: If the expected inflation rate was 2.5%,the
Q107: By Marks buys a one-year German government
Q108: The nominal interest rate is 7%,today's price
Q109: If the nominal interest rate on a
Q110: If the expected inflation rate was 2.5%,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