The nominal interest rate is 12 percent and the inflation rate is 4 percent. The opportunity cost of ...

Author Question: The nominal interest rate is 12 percent and the inflation rate is 4 percent. The opportunity cost of ... (Read 37 times)

nramada

Hero Member
Posts: 580

on: Jun 30, 2018

The nominal interest rate is 12 percent and the inflation rate is 4 percent. The opportunity cost of holding a dollar for a year is

A) 16 cents. B) 88 cents. C) 48 cents. D) 12 cents. E) 8 cents.

Question 2

There is a negative relationship between the real rate of interest and investment spending.

Indicate whether the statement is true or false

kingfahad97

Sr. Member
Posts: 308

Reply #1 on: Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

TRUE

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nramada

Hero Member
Posts: 580

Reply #2 on: Jun 30, 2018

Thank you

kingfahad97

Sr. Member
Posts: 308

Reply #3 on: Jun 30, 2018

Happy to help you

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