If inflation is 8 percent and the real interest rate is 3 percent, then the nominal interest rate must be ?

Related Mcqs:

Inflation can be measured by all of the following except the ?

A. All of these answers are used to measure inflation. B. consumer price index C. Producer price index D. GDP deflector E. finished goods price index...

Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?

A. An increase in the price of BMWs produced in Germany and sold in the Pakistan B. An increase in the price of Peugeots produced in the Pakistan C. An increase in the price of helicopters purchased by the Pak Navy. D. An increased in the Price of domestically produced armoured vehicles sold exclusively to … Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?Read More...

If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?

A. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract B. None of these answers C. borrowers will gain at the expense of lenders D. lenders will gain at the expense of borrowers...

Demand pull inflation may be caused by ?

A. An increase in costs B. A reduction in interest rate C. A reduction in government spending D. An outward shift in aggregate supply...

An increase in injections into the economy may lead to ?

A. An outward shift of aggregate demand- and demand-pull inflation B. An outward shift of aggregate demand and cost push inflation C. An outward shift of aggregate supply and demand-pull inflation D. An outward shift of aggregate supply and cost push inflation...