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

karen

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  • Posts: 537
on: Apr 19, 2019

Question 1

Celia wants to make an 8% 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


◦ 3%.
◦ 5%.
◦ 8%.
◦ 13%.

Question 2

If the inflation rate is larger 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
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Marked as best answer by karen on Apr 19, 2019

nathang24

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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.
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karen

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  • Posts: 537
Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

ktidd

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  • Posts: 319
Reply 3 on: Yesterday
Great answer, keep it coming :)

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