Assume that the inflation rate is positive. Given this information, which of the following is always...
Assume that the inflation rate is positive. Given this information, which of the following is always true?
A. The nominal interest rate must be equal to the real interest
rate.
B. The nominal interest rate must be greater than the real interest
rate.
C. The real interest rate is greater than the nominal interest
rate.
D. The real interest rate is negative.
E. The real interest rate is positive.
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Assume that the inflation rate is positive. Given this
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22. Under which of the following assumptions would the nominal interest rate be equal to the...
22. Under which of the following assumptions would the nominal interest rate be equal to the real interest rate? (a) expected inflation is equal to the nominal interest rate (b) expected inflation is equal to the real interest rate (c) expected inflation is negative (d) expected inflation is equal to zero (e) none of the above 23. If the nominal interest rate is less than the real interest rate, we know that (a) both the nominal or real interest rate...
Question 1 1.7 pts Whenever the expected inflation rate is positive The real interest rate is...
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The nominal interest can be negative if the inflation rate is greater than the nominal interest...
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Incorrect Question 25 0/1 pts When accounting profits are positive, economic profits must be positive. will be negative. will equal zero could be positive, negative or zero. 0/1 pts 4. асоте Question 26 aprile Which of the following is correc real interest strate - nominal interest rate - anticipated inflation rate real interest rate = nominal interest rate + anticipated inflation rate real interest rate - nominal interest rate - anticipated inflation rate amina 7 anticipated real interest rate inflation...
The nominal interest can be negative if the inflation rate is greater than the nominal interest rate. can be negative if deflation occurs. can be negative if inflation is unexpected. will never be negative. can be negative when the real interest rate is negative.
Which of the following is a FALSE statement? O A. If the inflation rate is positive, the price level in an economy is rising. O B. Inflation is a persistent and ongoing increase in the price level. O C. Higher than anticipated inflation lowers the real wage rate and employers gain at the expense of workers O D. Because of COVID-19 and the resulting world turmoil, Canada is experiencing hyperinflation E. The effects of anticipated inflation include transactions costs, tax...
According to the Fischer Effect, which of the following are true? the real interest rate and the rate of inflation are equal. the change in the rate of inflation and the change in the real interest rate a equal the change in the real interest rate and the change in the nominal interest are equal. the real interest rate remains unchanged. the real interest rate and the nominal interest rate are equal.
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