Business, 16.12.2019 23:31 wcjackie813

In year 1 the price level is constant and the nominal rate of interest is 6 percent. but in year 2 the inflation rate is 3 percent. if the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal interest rate must: a. rise by 9 percentage points. b. rise by 3 percentage points. c. fall by 3 percentage points. d. rise by 6 percentage points. the xyz corporation can make a real (inflation-adjusted) return on an investment of 9 percent. the nominal rate of interest is 13 percent and the rate of inflation is 7 percent. we can conclude that the: a. investment will be profitable. b. investment will be unprofitable. c. real rate of interest is 4 percent. d. real rate of interest is 2 percent.

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In year 1 the price level is constant and the nominal rate of interest is 6 percent. but in year 2 t...

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