If the nominal interest rate in an economy is 6, and the rate of ...

[anshika]

If the nominal interest rate in an economy is 6, and the rate of inflation in the economy is 4, the real interest rate in the economy is:
 
  A) 10. B) 24. C) 1.5. D) 2.

Question 2

The public debt is
 
  A) an excess of government spending over government revenues during a given time period.
  B) all federal government debt irrespective of who owns it.
  C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period.
  D) the total value of all outstanding federal government securities.

[orangecrush]

Answer to Question 1

D

Answer to Question 2

D

[anshika]

Correct answers!

[orangecrush]

Great! Please up vote