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Author Question: If actual inflation is less than expected inflation, what is the relationship between the actual ... (Read 110 times)

big1devin

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on: Jun 29, 2018
If actual inflation is less than expected inflation, what is the relationship between the actual real wage and the expected real wage?
 
  A) The actual real wage is higher than the expected real wage.
  B) The actual real wage is lower than the expected real wage.
  C) The actual real wage is equal to the expected real wage.
  D) The relationship between the actual real wage and the expected real wage cannot be predicted.

Question 2

What is the difference between the nominal interest rate and the real interest rate?
 
  What will be an ideal response?


dmurph1496

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The nominal interest rate is the stated interest rate on a loan, while the real interest rate is the nominal interest rate minus the inflation rate.


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big1devin

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Reply #2 on: Jun 29, 2018
Correct answers!


dmurph1496

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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