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Author Question: The nominal interest rate is 12 percent and the inflation rate is 4 percent. The opportunity cost of ... (Read 115 times)

nramada

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on: Jun 30, 2018
The nominal interest rate is 12 percent and the inflation rate is 4 percent. The opportunity cost of holding a dollar for a year is
 
  A) 16 cents. B) 88 cents. C) 48 cents. D) 12 cents. E) 8 cents.

Question 2

There is a negative relationship between the real rate of interest and investment spending.
 
  Indicate whether the statement is true or false


kingfahad97

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

TRUE


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nramada

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Reply #2 on: Jun 30, 2018
Thank you :)


kingfahad97

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Reply #3 on: Jun 30, 2018
Happy to help you


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