Harare Zimbabwe's central bank today raised its key interest ra From 50 percent to 70 percent. The governor of the Reserve Bank of Zimbabwe said the higher rate was intended to slow Consumer spending, increase foreign buying of Zimbabwean dollars, and slow the rate of inflation, currently running at

Brief Principles of Macroeconomics (MindTap Course List)
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Chapter12: Money Growth And Intlation
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WORLD VIEW
Zimbabwe Raises Key Interest Rate to 70%
Harare Zimbabwe's central bank today raised its key interest rate
from 50 percent to 70 percent. The governor of the Reserve
Bank of Zimbabwe said the higher rate was intended to slow
consumer spending, increase foreign buying of Zimbabwean
dollars, and slow the rate of inflation, currently running at
approximately 200 percent a year.
Source: News reports, September 12-15, 2019.
Please submit your answers as a whole number.
According to the World View, after the key interest rate was raised, what was
a. the nominal interest rate?
percent
b. the real interest rate?
percent
Transcribed Image Text:WORLD VIEW Zimbabwe Raises Key Interest Rate to 70% Harare Zimbabwe's central bank today raised its key interest rate from 50 percent to 70 percent. The governor of the Reserve Bank of Zimbabwe said the higher rate was intended to slow consumer spending, increase foreign buying of Zimbabwean dollars, and slow the rate of inflation, currently running at approximately 200 percent a year. Source: News reports, September 12-15, 2019. Please submit your answers as a whole number. According to the World View, after the key interest rate was raised, what was a. the nominal interest rate? percent b. the real interest rate? percent
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