In august, 1979, the annual rate of inflation in the u. s. was nearly 12%, and the u. s. short-term nominal interest rate was nearly 10%. over the next 35 years, both the rate of inflation and short-term nominal interest rate tended to fall. by august 2014, the rate of inflation was about 2% and the short-term nominal interest rate was close to 0%. how has the real short-term interest rate changed from 1979 to 2014?
a. the real rate remained stable at minus- 2%.
b. the real rate declined by 10%.
c. the real rate increased by 10%.
d. the real rate remained stable at 2%.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In august, 1979, the annual rate of inflation in the u. s. was nearly 12%, and the u. s. short-term nominal interest rate was nearly 10%. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The manager of a store that specializes in selling tea decides to experiment with a new blend. She will mix some Earl Grey tea that sells for $ 4$4 per pound with some Orange Pekoe tea that sells for $ 2$2 per pound to get 300300 pounds of the new
Answers (1)
Notes may be issued a. to creditors to temporarily satisfy an account payable created earlier b. when assets are purchased c. when borrowing money d. All of these choices are correct.
Answers (1)
Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better.
Answers (1)
Because most businesses don't have a one-size-fits-all approach, what do you need to do? a.) add your own creativity to any concept. b.) come up with something completely new c.) change your idea often d.) find a new model
Answers (2)
Anthers Inc. bought the following portfolio of trading securities near the end of 2018. Security Cost Fair value 12/31/2018 A $ 80,000 $ 84,000 B 60,000 54,000 C 22,000 22,000 What amount will be reported in the balance sheet for this portfolio at
Answers (1)
New Questions in Business
Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in:
Answers (1)
A company uses the periodic inventory system and had the following activity during the current monthly period.
Answers (1)
Recently, Pfizer and Allergan - the makers of Viagra and Botox, respectively - initiated a $160 billion merger. Pharmaceutical companies tend to spend a greater percentage of sales on R&D activities than other industries.
Answers (1)
Concord Furniture factors $893000 of receivables to Pharoah, Inc. Pharoah assesses a 3% service charge on the amount of receivables sold. Concord Furniture factors its receivables regularly with Pharoah.
Answers (1)
Consider income data for three fictional nations. In Smithland, the top half of earners make $100,000 per year, while the bottom half make $20,000. Hayektopia's bottom half also make $20,000 per year, while its top half make $200,000.
Answers (1)