EC140 Chapter 11: Chapter 11 Notes and multiple choice
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Related Questions
23. | Shoe-leather costs refer to the costs of: | ||||||||
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24. | Unit-of-account costs of inflation are the: | ||||||||
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25. | Menu costs of inflation are the: | ||||||||
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26. | Which statement is true? | ||||||||
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27. | Suppose that the nominal rate of interest is 7 percent and the inflation rate is 3 percent. The real rate of interest is equal to: | ||||||||
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28. | You have gone to the bank to borrow money for one year. The nominal annual interest rate is 7.5 percent. The real rate of interest is 4 percent. (Hint: what is the expected inflation rate?) Over the course of the year, overall prices increased by 3 percent. (Hint: What is the actual inflation rate?) This rate of inflation hurt the _____ because the actual rate of inflation was _____ than the anticipated rate of inflation. | ||||||||
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