失業與通脹

Suppose individuals can only choose to hold bonds or cash. The cost of holding cash is

The real rate of return on holding non-interest-earning cash is positive if

The nominal interest rate and the expected inflation rate are 10% and 7% respectively. If the actual inflation rate returns out to be 12%, then the realized real rate of interest will be _________ and the real rate of return on holding cash will be _________.

Study the diagram below.

The diagram shows that during the period,

The inflation rate in an economy was 10% in 1996 and dropped to 5% in 1997. Which of the following must be true about the economy in the above period?

The expected inflation rate and the real rate of interest rate are 10% and 4% respectively. If the actual inflation rate turns out to be 9% only, the cost of holding cash is _________ and the real rate of return on holding cash is _________.

When inflation occurs, the opportunity cost of holding money is equal to

If the inflation rate falls and remains positive,

If the sum of the real interest rate and the anticipated inflation rate is greater than the nominal interest rate, which of the following will be FALSE?

If the nominal rate of interest is 10% but the real rate of interest is only 6%, the real return on holding cash will be