Author Question: The Fisher equation implies ________. A) the nominal interest rate equals the real rate of ... (Read 51 times)

NguyenJ

  • Hero Member
  • *****
  • Posts: 516
The Fisher equation implies ________.
 
  A) the nominal interest rate equals the real rate of inflation plus expected inflation
  B) the real interest rate equals expected inflation
  C) expected inflation equals current inflation
  D) the rate of inflation equals the real minus the nominal rates of interest
  E) none of the above

Question 2

A negative shock in aggregate demand will likely result in no permanent change in ________.
 
  A) output
  B) the equilibrium inflation rate if the central bank responds by lowering interest rates
  C) aggregate demand, if the central bank responds by lowering interest rates
  D) all of the above
  E) none of the above



raili21

  • Sr. Member
  • ****
  • Posts: 324
Answer to Question 1

E

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

For a complete list of videos, visit our video library