Suppose the nominal interest rate is 1 and the rate of inflation ...

[jayhills49]

Suppose the nominal interest rate is 1 and the rate of inflation is 3. The real interest rate is therefore
 
  A) -2.
  B) 2.
  C) 4.
  D) 5.

Question 2

Lu Thier is an accomplished violin and viola maker. He can make either 6 violins or 6 violas each year, or a combination such as 3 violins and 3 violas. Which statement below is true?
 
  A) The opportunity cost of producing 1 violin is 1 viola.
  B) The opportunity cost of producing 1 violin is 3 violas.
  C) The opportunity cost of producing 1 violin is 6 violas.
  D) The opportunity cost of producing 1 violin is 9 violas.

[kthug]

Answer to Question 1

A

Answer to Question 2

A

[jayhills49]

Correct answers!

[kthug]

Great! Please up vote