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22.02.2020 •
Business
Which of the following would be most likely to lead to increases in nominal interest rates?
a. There is a decrease in expected inflation.
b. The economy falls into a recession.
c. A new technology such as the Internet has just been introduced, and it increases investment opportunities.
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Ответ:
c. A new technology such as the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Nominal interest rate is the sum of real interest rate and expected inflation rate.
If expected inflation rate falls, the nominal interest rate also falls.
During a recession, people are more unwilling to borrow funds ,this pushes interest rate down.
If investment opportunities increases, the demand for funds would increase and nominal interest rate would increase too.
I hope my answer helps you
Ответ:
answer:
explanation:
i don’t know