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Author Question: If the nominal interest rate in an economy is 6 and the inflation rate in the economy is 10, then ... (Read 66 times)

sjones

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on: Jun 30, 2018
If the nominal interest rate in an economy is 6 and the inflation rate in the economy is 10, then the real interest rate is:
 
  A) -6. B) 10. C) 6. D) -4.

Question 2

If the MPS = 0.2, the multiplier would be
 
  A) 0.5. B) 1. C) 2. D) 5.
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
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annierak

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

D

Answer to Question 2

D


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