If the nominal interest rate is 5.6 and inflation rate is 2.4, the real interest rate is ________.
A) 4 B) 3.2 C) 6.4 D) 8
Question 2
Which of the followings statements is true?
A) The amount of capital accumulation will be higher if the capital stock of last year was low.
B) The amount of depreciation will be lower if the investment on capital last year was high.
C) The amount of capital accumulation will be higher if the capital stock of last year was high.
D) The amount of depreciation will be higher if the investment amount on capital last year was low.
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