What is the real interest rate if Mr. Nasser took a loan of OMR 10000 and the nominal interest rate is 15%, the inflation rate is 10? a. 2% b. 3% c. 5% d. 6%   6. Which of the following defines a contractionary policy? a. Monetary and fiscal policy that speeds up the economy b. Monetary and fiscal policy that slows down the economy c. Unemployment and tax policy that speeds up the economy d. Exchange and wage policy that speeds up the economy

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 4.10P
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5.

What is the real interest rate if Mr. Nasser took a loan of OMR 10000 and the nominal interest rate is 15%, the inflation rate is 10?

a.
2%

b.
3%

c.
5%

d.
6%

 

6.

Which of the following defines a contractionary policy?

a.
Monetary and fiscal policy that speeds up the economy

b.
Monetary and fiscal policy that slows down the economy

c.
Unemployment and tax policy that speeds up the economy

d.
Exchange and wage policy that speeds up the economy

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