The quantity of real money balances demanded depends on the ____
A: nominal interest rate.
B: rate of inflation.
C: nominal money supply.
D: price level.
A: nominal interest rate.
B: rate of inflation.
C: nominal money supply.
D: price level.
举一反三
- The relationship among real interest rate, nominal interest rate, and expected inflation rate is _________. A: real interest rate = nominal interest rate+ expected inflation rate B: real interest rate = nominal interest rate- expected inflation rate C: real interest rate = expected inflation rate - nominal interest rate D: nominal interest rate = real interest rate - expected inflation rate
- The real interest rate is equal to the nominal rate minus inflation.
- If a country had deflation, A: the nominal interest rate would be greater than the real interest rate. B: the real interest rate would be greater than the nominal interest rate. C: the real interest rate would equal the nominal interest rate. D: None of the above is necessarily correct.
- If the nominal interest rate is 5% and the inflation rate is 2%, then the real interest rate is 7%.
- If the inflation rate is zero, then A: both the nominal interest rate and the real interest rate can fall below zero. B: the nominal interest rate can fall below zero, but the real interest rate cannot fall below zero. C: the real interest rate can fall below zero, but the nominal interest rate cannot fall below zero. D: neither the nominal interest rate nor the real interest rate can fall below zero.