« previous next »

Author Question: If inflation had long been 4 and was therefore expected to continue, then it unexpectedly increased ... (Read 149 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?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Long-Term Potentiation Long-Term Potentiation
Levels of Processing Affects Long-Term but not Short-Term Memory Levels of Processing Affects Long-Term but not Short-Term Memory
Association of Different HLA Alleles and Increased Susceptibility to Autoimmune Diseases Association of Different HLA Alleles and Increased Susceptibility to Autoimmune Diseases
Suggested Antibiotic Prophylaxis Regimens in Patients at Potential Increased Risk of Hematogenous ... Suggested Antibiotic Prophylaxis Regimens in Patients at Potential Increased Risk of Hematogenous ...
Human activity has released carbon from sequestration in long-term reservoirs Human activity has released carbon from sequestration in long-term reservoirs
A wave whose wavelength is 0.500 m is traveling down a 500-m long wire whose total mass is 25 ... A wave whose wavelength is 0.500 m is traveling down a 500-m long wire whose total mass is 25 ...
Video: Causes of Acne

For a complete list of videos, visit our video library