Author Question: The real interest rate can be approximated by a. adding the nominal interest rate and the ... (Read 29 times)

TFauchery · **on:** Jun 30, 2018

The real interest rate can be approximated by

a. adding the nominal interest rate and the inflation rate
b. subtracting the nominal interest rate from the inflation rate
c. adding last year's nominal interest rate to this year's
d. subtracting the inflation rate from the nominal interest rate
e. none of the above

Question 2

You have the following data about the exchange rates between the Brazilian Real and the Guatemalan Quetzal. June 1, 2011 0.6752 Reales / Quetzales June 1, 2012 0.3481 Reales / Quetzales From this data you may conclude that

A) the Real depreciated.
B) the Quetzal appreciated.
C) the Quetzal depreciated.
D) the Real was revalued.