This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose that you took out a 1000 loan in January and had to pay 75 in annual interest. During the ... (Read 57 times)

javeds

  • Hero Member
  • *****
  • Posts: 570
on: Jun 29, 2018
Suppose that you took out a 1000 loan in January and had to pay 75 in annual interest. During the year, inflation was 6 percent. Which of the following statements is CORRECT?
 
  A) The nominal interest rate is 7.5 percent and the real interest rate is 1.5 percent.
  B) The nominal interest rate is 7.5 percent and the real interest rate is 13.5 percent.
  C) The real interest rate is 7.5 percent and the nominal interest rate is 1.5 percent.
  D) The real interest rate is 6 percent and the nominal interest rate is 7.5 percent.

Question 2

The aggregate production function describes the relationship between
 
  A) real GDP and the quantity of labor employed.
  B) real GDP and the price level.
  C) the rate of growth of real GDP and inflation.
  D) real GDP and the unemployment rate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Jmfn03

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A


javeds

  • Member
  • Posts: 570
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

cam1229

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Annual Federal Deficit (or Surplus), 1992–2016 Annual Federal Deficit (or Surplus), 1992–2016
Start the vehicle’s engine and let run at 1000–1500 RPM. The engine is now running on fuel ... Start the vehicle’s engine and let run at 1000–1500 RPM. The engine is now running on fuel ...
How to solve a linear algebraic bank interest problem with two unknowns How to solve a linear algebraic bank interest problem with two unknowns
Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ... Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ...
What principal will earn $77.14 interest at 6.65% p. What principal will earn $77.14 interest at 6.65% p.
A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ... A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ...
Video: Glucose anabolism reactions: Glycogenolysis and Gluconeogenesis

For a complete list of videos, visit our video library