This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of ... (Read 93 times)

ashley

  • Hero Member
  • *****
  • Posts: 584
on: Jun 30, 2018
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
 a. neither the borrower nor the lender benefits from inflation.
  b. both the borrower and the lender lose from inflation.
  c. the borrower benefits from inflation, while the lender loses from inflation.
  d. the lender benefits from inflation, while the borrower loses from inflation.

Question 2

Supply-side fiscal policies focus on improving the incentives to work, save, and invest.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

BUTTHOL369

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

True


ashley

  • Member
  • Posts: 584
Reply 2 on: Jun 30, 2018
Wow, this really help

DylanD1323

  • Member
  • Posts: 314
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

THE RATE OF PHOTOSYNTHESIS THE RATE OF PHOTOSYNTHESIS
Political parties vs interest groups Political parties vs interest groups
Influence of substrate concentration on the rate of an enzyme-catalyzed reaction. Influence of substrate concentration on the rate of an enzyme-catalyzed reaction.
How to solve simple percent word problems (Part 1) How to solve simple percent word problems (Part 1)
Outgroup role in relative rate test Outgroup role in relative rate test
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Video: Role of the urinary system - acidosis and alkalosis

For a complete list of videos, visit our video library