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If the nominal interest rate is 4 percent and the inflation rate is 6 percent, then the real interest rate is
If the nominal interest rate is 7.9 percent and the inflation rate is 3.0 percent, the real interest rate is _______________ percent.
If a nominal interest rate is 8 percent, and inflation is 8 percent, then the real interest rate is: minus 2 percent. 16 percent. 0 percent. 8 percent.
If the nominal interest rate is 10 percent and the inflation rate is 4 percent, then what is the real interest rate? Enter numbers only. Do not enter letters or symbols. Price of Energy Drinks (Dollars per Can) 10 mesta Supply 8 7 6 3 World Price Tax 2 A World Price 1 Domestic Demand 0 1 2 3 6 7 8 9 10 Quantity of Energy Drinks (Thousands of Cans) Refer to the Figure above. With trade and tariff,...
The real rate of interest is 3 percent and inflation is 4 percent. What is the nominal rate of interest? Multiple Choice A. 3.00 percent B. 1.00 percent C. 7.12 percent D. -1.00 percent
If the nominal interest rate is 2% and the real interest rate is 1%, inflation is:A. -1 %.B. 0 %C. 1 %.D. 2 %.
The real interest rate A. is equal to the nominal interest rate minus the inflation rate. B. is the interest rate that adjusts GDP for changes in prices. C. is equal to the inflation rate minus the nominal interest rate. D. is the interest rate that is quoted on a financial debt and a firm's assets.
The nominal interest rate is 12%. The inflation rate is 3%. The real interest rate is equal to %.
If the inflation rate is zero, then A.) both the nominal interest rate and the real interest rate can fall below zero. B.) the nominal interest rate can fall below zero, but the real interest rate cannot fall below zero. C.) the real interest rate can fall below zero, but the nominal interest rate cannot fall below zero. D.) neither the nominal interest rate nor the real interest rate can fall below zero.
11. Inflation and Nominal Returns Suppose the real rate is 2.25 percent and the inflation rate is 3.2 percent. What rate would you expect to see on a Treasury bill?
What is the real interest rate if the nominal interest rate is still 8% but inflation is 1%? Does it cost more or less to borrow than when inflation was 3%?