Question
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE 6)You ask your boss for a
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE
6)You ask your boss for a real productivity wage raise of 1.5% knowing inflation is projected to be 2%. You receive a 3% raise. If inflation holds true to the 1.5% forecast,
A)Both a and b are correct.
B)You received a real raise of 1%.
C)You received a nominal raise of 4.5%.
D)You received a real raise of 1.5%.
12-Overnight USD loans mostly among large US banks are said to form the:
A)Federal funds market
B)Capital market
C)Money market
D)Negotiable certificate of deposits market
17-Which of the following are considered to determine the real interest rate?
A)Productive opportunities in the economy
B)Inflation
C)Consumer time preferences for consumption
D)Both consumer time preferences and productive economic opportunities are determinants of the real interest rate
18-If a countrys real interest rate is 3% and its inflation rate is 1%, what is the nominal risk-free rate for a T-Bill?
A)4%
B)1%
C)2%
D)3%
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