Question
1) What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 3 percent? a. 0
1) What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 3 percent?
| a. | 0 percent | |
| b. | 4 percent | |
| c. | 10 percent | |
| d. | -4 percent | |
| e. | -3 percent |
2) A decrease in the interest rate, other things constant, will _____
| a. | shift the supply of loanable funds curve to the right. | |
| b. | shift the demand for loanable funds curve to the right. | |
| c. | increase the quantity of loanable funds supplied. | |
| d. | shift the demand for loanable funds curve to the left. | |
| e. | increase the quantity of loanable funds demanded. |
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The Economic Development Of Latin America Since Independence
Authors: Luis Bértola, Luis Bértola
1st Edition
0191638242, 9780191638244
