« previous next »

Author Question: If inflation had long been 4 and was therefore expected to continue, then it unexpectedly increased ... (Read 190 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Jun 30, 2018
If inflation had long been 4 and was therefore expected to continue, then it unexpectedly increased to 7 inflation:
 a. the real interest rate on loans issued just before the change occurred would decrease by three percentage points.
  b. the real interest rate on loans issued just before the change occurred would increase by three percentage points.
  c. the real interest rate on loans issued just before the change occurred would not change.
 d. none of the above.

Question 2

The nominal interest rate equals:
 a. the real interest rate minus the inflation rate.
  b. the inflation rate minus the real interest rate.
  c. the real interest rate plus the inflation rate.
  d. none of the above.


johnpizzaz

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Long-Term Potentiation Long-Term Potentiation
When young infants hold objects for a long period of time they eventually become habituated to them. When young infants hold objects for a long period of time they eventually become habituated to them.
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
In the figure, a 10.0-m long bar is attached by a frictionless hinge to a wall and held ... In the figure, a 10.0-m long bar is attached by a frictionless hinge to a wall and held ...
The expected results of two generations of semiconservative replication The expected results of two generations of semiconservative replication
A horizontal, 2.00 m long, 3.00 kg uniform beam that lies along the east-west di A horizontal, 2.00 m long, 3.00 kg uniform beam that lies along the east-west di
Video: Hypoglycemia Animation

For a complete list of videos, visit our video library