Which of the following statements about interest rates is correct?
Correct answer C. The real interest rate is the nominal interest rate minus the inflation rate
Topic / 29 questions
Inflation & Productivity MCQs
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- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
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- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
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- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
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- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
In which of these situations would you rather be the lender?
Correct answer C. The nominal rate of interest is 5 percent and the inflation rate is 1 percent
Borrowers and lenders agree a nominal interest rate, but inflation turns out lower than they expected. What happens?
Correct answer B. Lenders gain at the expense of borrowers
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Which of the following may cause demand-pull inflation?
Correct answer C. A reduction in interest rates
What may an increase in injections into the economy lead to?
Correct answer A. An outward shift of aggregate demand and demand-pull inflation
What will a rise in costs do?
Correct answer A. Shift aggregate supply
In relation to inflation, what are menu costs?
Correct answer B. Costs of altering price lists
According to the Phillips curve, when will unemployment return to its natural rate?
Correct answer D. When nominal wages are equal to expected wages
A number of letter that appears little above the normal text is called
Correct answer A. Superscript
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