Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent. At the end of the year prices have actually risen by 7 percent. A. Gladys earns extra real income. B. Neither party gains or loses if the loan is repaid. C. Kay receives extra real income. D. Kay loses extra real income.

You deposit​ $200 in a savings account on January​ 1, and the bank pays you interest of​ $10 at the end of the year.   During the​ year, the average price level rises by 2 percent.   What is the real interest rate on your savings​ account? The real interest rate on your savings account is​ _______.     A. 3 percent a year   B. 2 percent a year   C. ​$6   D. 6 percent a year

17. Use the market for loanable funds shown in the accompanying diagram to explain what happens to private savings, private investment spending, and the interest rate if each of the following events occur. Assume that there are no capital inflows or outflows. a. The government reduces the size of its deficit to zero. b. At any given interest rate, consumers decide to save more. Assume the budget balance is zero. c. At any given interest rate, businesses become very optimistic about the future profitability of invest- ment spending. Assume the budget balance is zero. Interest rate 1 х S D Q₁ Quantity of loanable funds

Economics,

.  The rate of ______ is the ______ paid for using someone else’s ______, which is a _____ to consumers for earlier availability of durable goods such as cars, and a ______ to suppliers for capital investments   nominal interest; money; cost; price; cost nominal interest; price; money; cost; cost real interest; price; money; cost; cost real interest; money; cost; price; cost

not understanding how to show this

please answer part 3

If the equilibrium price of bonds increases, what happens to the associated interest rate?   A. Interest rate increases   B. Interest rate declines   C. Interest rate does not change

Cindy takes a summer job and earns an after-tax income of $5,000. Her living expenses during the summer were $1,000. What was Cindy's saving during the summer and the change, if any, in her wealth? >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. Cindy's saving during the summer is $

K Consider the graph to answer the following questions: a. The shift from S, to S₂ represents in the supply of loanable funds. b. With the shift in supply, the equilibrium quantity of loanable funds c. With the change in the equilibrium quantity of loanable funds, the quantity of saving and the quantity of investment ▼ A CI Real Interest Rate Market for Loanable Funds L₂ L1 Loanable Funds ($ per year) S₁ Q