Ask a New Question

Question

For a given nominal interest rate, an unexpectedly low inflation rate ______ the real interest rate.

a. increases
b. decreases
c. has no impact on
d. may either increase or decrease
e. is subtracted from
17 years ago

Answers

economyst
real interest rate is nominal rate less inflation. So... "raises"
17 years ago

Related Questions

7. Find the nominal interest rate that is equivalent to 18%/a, compounded quarterly, if interest is... The nominal rate of interest is 8% and the rate of inflation is 5%. A single deposit is invested fo... The nominal interest rate is 12 percent per year in Canada and 8 percent per year in the United Stat... The nominal interest rate is 12 percent per year in Canada and 8 percent per year in the United Stat... calculate the nominal interest per annum if the effective rate was 11.4% p.a compounded half yearly... . The nominal interest rate on your account is 7%; your semi-annually effective rate of interest (AP... If the nominal interest rate is 6 percent and the inflation rate is 3 percent, the real interest rat... If the nominal interest rate is 8 percent and expected inflation is 2.5 percent, then what is the re... If the nominal interest rate is 4.00% and the rate of inflation is 2.25%, what is the real interest... If the nominal interest rate is 4.00% and the rate of inflation is 2.25%, what is the real interest...
Ask a New Question
Archives Contact Us Privacy Policy Terms of Use