Author Question: The nominal interest rate will be less than the real interest rate when A) the rate of inflation ... (Read 193 times)

Davideckstein7 · **on:** Jun 29, 2018

The nominal interest rate will be less than the real interest rate when

A) the rate of inflation is negative. B) the real interest rate is negative.
C) the rate of inflation is positive and increasing. D) the rate of inflation is positive but decreasing.

Question 2

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

A) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy.
B) Because of the low birth rate in China, the labor force will soon decline.
C) The United States invests more in research and development than does China.
D) The Chinese migration of rural workers to more productive urban jobs.