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%?
What is the real interest rate if the nominal interest rate is still 8% but inflation...
If the inflation rate is 3% and the nominal interest rate is 8%, what is the real interest rate? Your answer is referred to as the real pre‐tax interest rate.
Suppose the real interest rate is 3% and expected inflation is 3%. What is the nominal interest rate?nominal interest rate: = _______ %All else equal, if inflation decreases by 0 %, what will happen to the nominal interest rate?The real interest rate will decrease by 0 %.The nominal interest rate will decrease by 0 %.The nominal interest rate will increase by 0 %.The real interest rate will increase by 0 %.What do economists call the relationship between the nominal interest...
When the real rate of interest is less than the nominal rate of interest, then: A. inflation must be added to the nominal rate. B. investment returns do not increase purchasing power. C. nominal flows should be discounted with real rates. D. inflation is expected to occur.
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.
The nominal interest rate is the: same as the real interest rate. rate of interest that investors pay to borrow money. rate of inflation minus the real rate of interest. real rate of interest minus the rate of inflation.
What is the real interest rate if the nominal interest rate is 8% and the expected inflation rate is10% over the course of a year?
Suppose the real interest rate is 3% and expected inflation is 3%. What is the nominal interest rate? nominal interest rate:
If expected inflation is constant, then when the nominal interest rate falls, the real interest rate O A. falls by more than the change in the nominal interest rate. falls by the change in the nominal interest rate. Oc rises by the change in the nominal interest rate. OD.rises by more than the change in the nominal interest rate. QUESTION 15 According to liquidity preference theory, if there were a surplus of money, then O A. the interest rate would...
a. What is the relationship between real interest rate, nominal interest rate and inflation rate? b. What are the reasons for very high nominal interest rates in the 1980s? c. Explain ex-ante real rate and ex-post real rate.
The nominal interest rate is 8 percent and the inflation rate is 3 percent. What is the real interest rate? a. 8 percent b. 2 percent c. 11 percent d. 5 percent