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Author Question: People expect an inflation rate of 5 percent and the real interest rate is positive. Consequently ... (Read 54 times)

K@

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  • Posts: 608
on: Jun 29, 2018
People expect an inflation rate of 5 percent and the real interest rate is positive. Consequently the nominal interest rate will be
 
  A) more than 5 percent.
  B) 5 percent.
  C) less than 5 percent.
  D) Without more information it is impossible to tell if the nominal interest rate will be more than, less than, or equal to 5 percent.

Question 2

The aggregate production function shows how ________ varies with ________.
 
  A) leisure time; labor
  B) labor; leisure time
  C) real GDP; labor
  D) labor; capital


mrphibs

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

C


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