• 2021-04-14
    When the growth rate of the money supply is decreased, interest rates will rise immediately if the liquidity effect is _________ than the other effects and if there is _________ adjustment of expected inflation.
  • larger; slow

    内容

    • 0

      When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________. A: demand; rise B: demand; fall C: supply; fall D: supply; rise

    • 1

      In which of the following situations would you prefer to be making a loan? A: The interest rate is 9 percent and the expected inflation rate is 7 percent. B: The interest rate is 4 percent and the expected inflation rate is 1 percent. C: The interest rate is 13 percent and the expected inflation rate is 15 percent. D: The interest rate is 25 percent and the expected inflation rate is 50 percent.

    • 2

      The nominal interest rate minus the expected rate of inflation _________

    • 3

      Countries with the highest inflation rates are likely to have A: the highest rates of money growth B: small budget deficits relative to GDP C: the lowest interest rates D: all of the above

    • 4

      _________________ refers to that nominal interest rates (i) in each country equal the required “real” rate of interest (r) and the expected rate of inflation over the period for which the funds are to be lent (l); that is, i = r + l. A: Fisher effect B: Fisher function C: Fisher rule D: Fisher theory