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Author Question: If inflation is 10 and the nominal interest rate equals 16.6 the real interest rate is equal to ... (Read 58 times)

daltonest1984

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If inflation is 10 and the nominal interest rate equals 16.6 the real interest rate is equal to
 
  A) 6.6.
  B) 6.
  C) -6.6.
  D) zero.

Question 2

Suppose two people with the same level of income and wealth have different discount rates. Joe has a very high discount rate and Jim has a very low discount rate. Which one of the following is TRUE?
 
  A) Joe is more likely to borrow than Jim.
  B) Joe is less likely to borrow than Jim.
  C) Joe and Jim will borrow the same amount.
  D) Neither Joe nor Jim would be borrowers.


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ong527

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daltonest1984

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Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it


mammy1697

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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