The real rate of interest Select one: O a. is the same as the inflation rate. O b. is the rate a which a low-risk borrower can obtain a loan. O c. is the money rate of interest minus the risk premium. O d. is generally more than the money interest rate when there is inflation.

The real rate of interest Select one: O a. is the same as the inflation rate. O b. is the rate a which a low-risk borrower can obtain a loan. O c. is the money rate of interest minus the risk premium. O d. is generally more than the money interest rate when there is inflation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please please sir answer both I know sir policy but i have no more questions left sir please

The real rate of interest
Select one:
O a. is the same as the inflation rate.
O b. is the rate a which a low-risk borrower can obtain a loan.
O c. is the money rate of interest minus the risk premium.
O d.
is generally more than the money interest rate when there is inflation..
is generally less than the money interest rate when there is inflation.
O e.

If the interest rate is 8%, the present value of $500 payable one year from now and
$500 payable two years from now is
Select one:
O a. $891.63
O b. $892.86
O c. $806.45
O d. $925.93
O e. $857.34

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