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Unformatted text preview: new money. Which of the following would happen? Correct Answer: Question 8 1 out of 1 points The nominal interest rate is 5 percent and the real interest rate is 2 percent. What is the inflation rate? Correct Answer: Question 9 0 out of 1 points The Fisher effect Correct Answer: c. interest rate to the inflation rate. Question 10 0 out of 1 points People go to the bank more frequently to reduce currency holdings when inflation is high. The sacrifice of time and convenience that is involved in doing that is referred to as Correct Answer: Question 11 0 out of 1 points In the U.S., people are required to pay taxes on Correct Answer: a. interest earnings. Question 12 0 out of 1 points If inflation is higher than what was expected, Correct Answer: c. anticipated....
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