Author Question: If the real interest rate is 8 percent and the inflation rate is 2.5 percent, then the nominal ... (Read 62 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
If the real interest rate is 8 percent and the inflation rate is 2.5 percent, then the nominal interest rate is
 
  A) 8 percent. B) 10.5 percent. C) 3.2 percent. D) 2.5 percent. E) 5.5 percent.

Question 2

Banks can obtain funds to make loans by borrowing reserves from other banks through the federal funds market.
 
  Indicate whether the statement is true or false



nhea

  • Sr. Member
  • ****
  • Posts: 305
Answer to Question 1

B

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

For a complete list of videos, visit our video library