Author Question: If the nominal interest rate increases without any change in the rate of inflation: A) the ratio ... (Read 23 times)

corkyiscool3328 · **on:** Jun 30, 2018

If the nominal interest rate increases without any change in the rate of inflation:

A) the ratio of real interest rate to nominal interest rate increases.
B) the real interest rate increases.
C) the real interest rate decreases.
D) the real interest rate remains the same.

Question 2

Which of the following is TRUE when a budget deficit exists?

A) Dissaving exists. B) Tax revenues exceed government expenditures.
C) A trade surplus exists. D) Government expenditures exceed tax revenues.