This topic contains a solution. Click here to go to the answer

Author Question: You borrow 10,000 from a bank for one year at a nominal interest rate of 5. If inflation over the ... (Read 73 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
You borrow 10,000 from a bank for one year at a nominal interest rate of 5. If inflation over the year is 2, what is the real interest rate you are paying?
 
  A) 2 B) 2.5 C) 3 D) 5

Question 2

If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP, then
 
  A) the economy is in an expansion.
  B) actual inventory investment will be less than planned inventory investment.
  C) actual inventory investment will be greater than planned inventory investment.
  D) the economy is at full employment.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

heinisk01

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

C

Answer to Question 2

A




cartlidgeashley

  • Member
  • Posts: 572
Reply 2 on: Jun 29, 2018
Wow, this really help


steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

For a complete list of videos, visit our video library