Author Question: If the nominal interest rate is greater than the real interest rate in an economy: A) the real ... (Read 74 times)

Mr.Thesaxman · **on:** Jun 30, 2018

If the nominal interest rate is greater than the real interest rate in an economy:

A) the real interest rate must be negative. B) inflation must be positive in the economy.
C) inflation must be zero in the economy. D) inflation must be negative in the economy.

Question 2

Refer to the scenario above. The hypothesis of the model is that:

A) college graduates will earn 80 percent more than high school graduates.
B) college graduates will earn 200 percent more than high school graduates.
C) college graduates will earn 107 percent more than high school graduates.
D) college graduates will earn 275 percent more than high school graduates.