If inflation had long been 4 and was therefore expected to continue, then it unexpectedly increased to 7 inflation:
a. the real interest rate on loans issued just before the change occurred would decrease by three percentage points.
b. the real interest rate on loans issued just before the change occurred would increase by three percentage points.
c. the real interest rate on loans issued just before the change occurred would not change.
d. none of the above.
Question 2
The nominal interest rate equals:
a. the real interest rate minus the inflation rate.
b. the inflation rate minus the real interest rate.
c. the real interest rate plus the inflation rate.
d. none of the above.
New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670
Increased neurogenesis in the dentate gyrus following damage. The left panel shows (1) an ...
How Long Do You Ovulate After Your Period?
Long-term relationships, especially those who are married, having a child
A tightrope walker walks across a 30-m long wire tied between two poles. The center of the wire ...
Experiments showing that long- or short-day plants flower in response to night length. Each horizont