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
A: the highest rates of money growth
B: small budget deficits relative to GDP
C: the lowest interest rates
D: all of the above
举一反三
- Expected future spot rates are based on relative inflation rates between two countries
- Looking at inflation rates in the United States since the 1970s we see that A: inflation fell the most during the 1970s productivity slowdown. B: the highest inflation rates were the double digits during the 1990s. C: the inflation rate increased with the increased growth of the 1990s. D: the 1970s experienced the highest inflation rates.
- Which of the following is true of mortgage interest rates? A: Mortgage rates are closely tied to Treasury bond rates, but mortgage rates tend to stay below Treasury rates because mortgages are secured with collateral. B: Longer-term mortgages have higher interest rates than shorter-term mortgages. C: Interest rates are higher on mortgage loans on which lenders charge points. D: All of the above are true. E: Only A and B of the above are true.
- Interest rates that include an inflation premium are referred to as A: annual percentage rates B: effective annual rates C: real rates D: nominal rates
- Budget deficits reduce national saving causing real interest rates A: and investment to fall B: and investrment to rise C: to rise and investment to fall D: None of the above