Which of the following statements is false?
A) The real interest rate is equal to nominal interest rate minus inflation rate.
B) If nominal interest rate increases by 2%, while inflation rate is 3%, then real interest rate decreases by 1%.
C) If nominal interest rate decreases by 2%, while deflation rate is 3%, then real interest rate decreases by 1%.
D) The nominal interest rate is equal to real interest rate plus inflation rate.
Correct Answer:
Verified
Q6: Q7: In terms of the production function Y Q8: In terms of the production function Y Q9: The level of potential output is treated Q10: A vertical line showing the economy's potential Q12: Assume that AE = 200 + 0.5Y Q13: Consider the following equations: AE = 200 Q14: Which of the following will not shift Q15: Q16: 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
