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
icon
Related questions
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.
Transcribed Image Text: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
Transcribed Image Text: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
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Interest rate
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education