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Author Question: If the real interest rate is 8 percent and the inflation rate is 2.5 percent, then the nominal ... (Read 80 times)

Collmarie

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on: Jun 30, 2018
If the real interest rate is 8 percent and the inflation rate is 2.5 percent, then the nominal interest rate is
 
  A) 8 percent. B) 10.5 percent. C) 3.2 percent. D) 2.5 percent. E) 5.5 percent.

Question 2

Banks can obtain funds to make loans by borrowing reserves from other banks through the federal funds market.
 
  Indicate whether the statement is true or false


nhea

  • Sr. Member
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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

TRUE


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