• 2022-05-31
    Generally, the holder of a government bond that is indexed to the price level knows
    A: either the interest rate, the principal, or both are adjusted for inflation
    B: the real interest rate will fluctuate with inflation
    C: there will be no losses as long as inflation is anticipated, but losses can occur if there is an unanticipated increase in the inflation rate
    D: all of the above
    E: none of the above
  • A

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    内容

    • 0

      The nominal interest rate minus the expected rate of inflation _________

    • 1

      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.

    • 2

      If you expect the inflation rate to be 15 percent next year and a one - year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is _________

    • 3

      In 2012,U.S.core inflation was 2.1 percent. This inflation rate A: is lower than the inflation rate the Fed accepts as creating stable prices. B: is about equal to the inflation rate the Fed accepts as creating stable prices. C: is more than 2 percentage points higher than the inflation rate the Fed accepts as creating stable prices. D: None of the above answers are correct because the Fed has never associated an inflation rate with stable prices.

    • 4

      if the nominal interest rate offered on a three-year deposit is 4% and the inflation rate over this period is 3%, the investor’s real rate of return is _____、