In which of the following situations is it most advantageous to be saving? Select one: A. The real interest rate is 13 percent and the expected inflation rate is 15 percent. B. The real interest rate is 4 percent and the expected inflation rate is 4 percent. C. The real interest rate is 1 percent and the expected inflation rate is 2 percent. D. The real interest rate is 11 percent and the expected inflation rate is 9 percent. E. The real interest rate is 7 percent and the expected inflation rate is 6 percent.

b) What is the difference between nominal interest rate and real interest rate? Does the central bank control the real or the nominal rate? What do we assume in our model?

36. When a person receives extra income above their regular income, they have an option to save or spend that additional income. The portion of the extra income that is spent can be represented in a figure called:       The Marginal Propensity to Consume     Savings and Loan Theory     The Marginal Propensity to Save     The Piggy Bank Theory   37. Economics studies how people use scarce resources to make choices. Those choices can be influenced by:       Consumers     Incentives     The government     Taxes   38. What is a problem with nominal GDP when compared to real GDP?       it represents past prices and is therefore unreliable     it always grossly overstates the output of a nation     It can represent deceptive outputs of a nation     it has no problems or disadvantages   39. What is a fiscal cliff?       A simultaneous increase in tax rates and cuts in government spending     A simultaneous decrease in tax rates and cuts in government spending     A simultaneous increase in…

Continue using the same environment for this question: Sheila lives for two periods. She earns $100 in the first period and $110 in the second period. She wants to consume exactly the same amount in both periods. The interest rate at which she can save and borrow is 10%. There is no inflation. Which of the following statements is true?     A. Sheila’s lifetime consumption is greater than her lifetime income   B. Sheila’s lifetime consumption is lower than her lifetime income   C. Sheila’s lifetime consumption is equal to her lifetime income Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer.  Take care of plagiarism. Answer completely. You will get up vote for sure.

28. An increase in national saving will cause real interest rate and investment spending to change in which of the following ways? A. B. C. D. E. Real Interest Rate Increase Increase Increase Decrease Decrease Nominal Interest Rate 7%³ z%¹ Sp3 Investment Increase Decrease Not change Increase Not change Sp T Q³ Q¹ D Quantity of Money

If the nominal interest rate is 4.2 percent and expected inflation rate is 3 percent, the real interest rate equals 7.2 percent. 1.2 percent. 3.6 percent. 12.6 percent.   none of the above