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Author Question: If the nominal rate of interest is 10.5 percent, and the inflation rate is 4.3 percent, what is the ... (Read 160 times)

audragclark

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on: Jun 30, 2018
If the nominal rate of interest is 10.5 percent, and the inflation rate is 4.3 percent, what is the real rate of interest?
 a. 3.0 percent
 b. 4.3 percent
 c. 6.2 percent
 d. 10.5 percent

Question 2

Given a fixed nominal interest rate on a loan, unanticipated deflation:
 a. decreases the burden of paying off the loan.
 b. increases the burden of paying off the loan.
 c. does not alter the burden of paying off the loan.
 d. has an indeterminate effect on the burden of paying off the loan.


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LegendaryAnswers

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

b


audragclark

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Reply 2 on: Jun 30, 2018
Excellent

scottmt

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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