Author Question: If the inflation rate is 5 percent and the real interest rate is 2.5 percent, then the nominal ... (Read 103 times)

Davideckstein7

  • Hero Member
  • *****
  • Posts: 555
If the inflation rate is 5 percent and the real interest rate is 2.5 percent, then the nominal interest rate is
 
  A) 10 percent. B) -2.5 percent. C) 2.5 percent. D) 7.5 percent. E) 2 percent.

Question 2

An example of the outlet substitution bias in the calculation of the CPI is a price increase in
 
  A) a trip to Mexico for a couple that had previously taken vacations in Europe.
  B) a 2014 Honda Civic relative to a 2004 Honda Civic.
  C) GPS units versus AAA map books.
  D) textbooks bought through the campus bookstore relative to textbooks via Craigslist.
  E) olive oil versus vegetable oil.



Natalie4ever

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

D

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

For a complete list of videos, visit our video library