This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the inflation rate is positive, then the real interest rate is greater than the nominal interest ... (Read 155 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
on: Jun 29, 2018
If the inflation rate is positive, then the real interest rate is greater than the nominal interest rate. Is the previous statement correct or incorrect? Explain your answer.
 
  What will be an ideal response?

Question 2

Which of the following formulas is correct?
 
  A) Net investment = gross investment + capital
  B) Net investment = gross investment - saving
  C) Net investment = gross investment - wealth
  D) Net investment = gross investment - depreciation
  E) Net investment = gross investment + depreciation


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bigsis44

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is incorrect. The nominal interest rate equals the real interest rate plus the inflation rate. Therefore, if the inflation rate is positive, the nominal interest rate is greater than the real interest rate.

Answer to Question 2

D


ENagel

  • Member
  • Posts: 540
Reply 2 on: Jun 29, 2018
Wow, this really help

fatboyy09

  • Member
  • Posts: 358
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Your heart beats over 36 million times a year.

Positive regulation of the lac operon by the catabolite activator protein (CAP) Positive regulation of the lac operon by the catabolite activator protein (CAP)
Acceptable ranges of respiratory rate Acceptable ranges of respiratory rate
Relative rate test, calibrating the molecular clock, and calculating divergence dates. Relative rate test, calibrating the molecular clock, and calculating divergence dates.
This chart illustrates the “drip down” model of government. In this, politics is formed by the soc This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
HIV-positive men with a high number of life stressors progress more quickly to AIDS than those with ... HIV-positive men with a high number of life stressors progress more quickly to AIDS than those with ...
Math Joke: Be Rational, Get Real Math Joke: Be Rational, Get Real
Video: Types of Transport - Uniport, Antiport and Symport (Glucose and Na+K+ Transporters)

For a complete list of videos, visit our video library