If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is ?

Related Mcqs:

If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be more than they expected ?

A. none of these answers B. Workers will gain at the expense of firms C. neither workers nor firms will gain because the increase in wages in fixed in the labor agreement D. firms will gain at the expense of workers....

Inflation ?

A. Reduce the cost of living B. Reduce the standard of living C. Reduce the price of products D. Reduce the purchasing power of a rupee...

An increase in aggregate demand is more likely to lead to demand pull inflation if ?

A. Aggregate supply is perfectly elastic B. Aggregate supply is Perfectly inelastic C. Aggregate supply is unit elastic D. Aggregate supply is relatively elastic...

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...