If the real interest rate is 4 percent and the inflation rate is ...

[Kikoku]

If the real interest rate is 4 percent and the inflation rate is 3 percent, then the nominal interest rate is
 
  A) -1 percent. B) 1 percent. C) 3.5 percent. D) 7 percent.

Question 2

For a nation to have ________ in producing a good it must have a lower opportunity cost of producing that good than the other country.
 
  A) a comparative advantage
  B) an autarky advantage
  C) an absolute advantage
  D) both a comparative advantage and an absolute advantage

[Eazy416]

Answer to Question 1

D

Answer to Question 2

A