This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the inflation rate is smaller than the nominal interest rate, the real interest rate is (Read 175 times)

TVarnum

  • Hero Member
  • *****
  • Posts: 548
on: Apr 19, 2019

Question 1

Lola wants to make an 6% real return on a loan that she is planning to make, and the expected inflation rate during the period of the loan is 5%. She should charge an interest rate of


◦ 1%.
◦ 6%.
◦ 11%.
◦ 16%.

Question 2

If the inflation rate is smaller than the nominal interest rate, the real interest rate is


◦ positive.
◦ negative.
◦ zero.
◦ either positive or zero.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by TVarnum on Apr 19, 2019

Gabe

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 56% of students answer this correctly


TVarnum

  • Hero Member
  • *****
  • Posts: 548
Reply #2 on: Apr 19, 2019
Excellent


Gabe

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Apr 19, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

The role of leptin in regulating appetite and metabolic rate. The role of leptin in regulating appetite and metabolic rate.
Political parties vs interest groups Political parties vs interest groups
Sample Workout in the Target Heart Rate Range Sample Workout in the Target Heart Rate Range
How to calculate simple interest (Part 5; r = I/Pt) How to calculate simple interest (Part 5; r = I/Pt)
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Real skeleton of a lion Real skeleton of a lion
Video: Vasectomy

For a complete list of videos, visit our video library