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

[nautica902]

If the nominal interest rate is 4 percent and the inflation rate is 1 percent, then the real rate of interest is
 
  A) 1 percent. B) 3 percent. C) 4 percent. D) 5 percent.

Question 2

When demand decreases and the demand curve shifts to the left, equilibrium price ________ and equilibrium quantity ________.
 
  A) increases; decreases B) decreases; increases
  C) decreases; decreases D) increases; increases

[Pswine]

Answer to Question 1

B

Answer to Question 2

C

[nautica902]

YES! Correct, THANKS for helping me on my review

[adammoses97]

Thanks for the timely response, appreciate it