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: 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
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
- If the nominal interest rate is 5% and the inflation rate is 2%, then the real interest rate is 7%.
- As the economy enters a boom we can generally expect that A: inflation will decrease with little change in the unemployment rate B: unemployment will increase and inflation will decrease C: nominal GDP will increase but only because of an increase in the price level D: inflation will increase and the unemployment rate will decrease E: output will increase with little change in unemployment or inflation
- 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.
- The target inflation rate for inflation targeting is usually（）. A: Inflation rate in the medium and long term B: Inflation rate in the short term C: Average inflation rate D: Past inflation rate