Denote r as the real interest rate on nominal bonds, pm as the real interest rate on money, i as the inflation rate, R as the nominal interest rate on nominal bonds, RM as the nominal interest rate on money, q as the price of credit card services, and P as the price of goods a (2 points) Using the fisher relation, show that the real return on money is less than the real return on nominal bonds b (3 points) Suppose that q R Then how many goods are purchased with credit cards relative to currency Why is this the case Denote r as the real interest rate on nominal bonds, pm as the real interest rate on money, i as the inflation rate, R as the nominal interest rate on nominal bonds, RM as the nominal interest rate on money, q as the price of credit card services, and P as the price of goods a (2 points) Using the fisher relation, show that the real return on money is less than the real return on nominal bonds b (3 points) Suppose that q R Then how many goods are purchased with credit cards relative to currency Why is this the case

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Denote r as the real interest rate on nominal bonds, pm as the real interest rate on money, i as the inflation rate, R as the nominal interest rate on nominal bonds, RM as the nominal interest rate on money, q as the price of credit card services, and P as the price of goods  a  (2 points) Using the fisher relation, show that the real return on money is less than the real return on nominal bonds  b  (3 points) Suppose that q  R  Then how many goods are purchased with credit cards relative to currency  Why is this the case  Denote r as the real interest rate on nominal bonds, pm as the real interest rate on money, i as the inflation rate, R as the nominal interest rate on nominal bonds, RM as the nominal interest rate on money, q as the price of credit card services, and P as the price of goods  a  (2 points) Using the fisher relation, show that the real return on money is less than the real return on nominal bonds  b  (3 points) Suppose that q  R  Then how many goods are purchased with credit cards relative to currency  Why is this the case

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Denote r as the real interest rate on nominal bonds, pm as the real interest rate on money, i as the inflation rate, R as

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