Suppose you have 400 and the inflation rate is 5 percent. In ...

[james9437]

Suppose you have 400 and the inflation rate is 5 percent. In order to earn a real return of 16 on your investment, the nominal interest rate needs to be near
 
  A) 0 percent. B) 4 percent. C) 6 percent. D) 9 percent.

Question 2

Both increases in the price level and increases in real GDP will decrease the demand for money.
 
  Indicate whether the statement is true or false

[josephsuarez]

Answer to Question 1

D

Answer to Question 2

FALSE

[james9437]

Excellent

[kswal303]

Gracias!