Question
The market interest rate in Alpha is 7%, and the market interest rate in Beta is 10%; the inflation rate in Alpha is 3%, and
The market interest rate in Alpha is 7%, and the market interest rate in Beta is 10%; the inflation rate in Alpha is 3%, and inflation rate in Beta is 8%. Which of the following statements is true?
The real interest rate is higher in Alpha, but the nominal interest rate is higher in Beta
The real interest rate is higher in Beta, but the nominal interest rate is higher in Alpha
Both the real and nominal interest rates are higher in Alpha
Both the real and nominal interest rates are higher in Beta
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The American Economy
Authors: Walter Greason, William Gorman
1st Edition
1524902675, 9781524902674
