Question : 61) Caroline has saved $100,000 for her retirement. She earned : 1238502

61) Caroline has saved $100,000 for her retirement. She earned 4 percent interest on that money during the year 2013. If the inflation rate was 1 percent in 2013, what was Caroline’s real interest rate?

A) $4,000

B) 4 percent

C) 3 percent

D) 1 percent

E) 5 percent

62) If the real interest rate is 5 percent when the inflation rate is 4 percent, the nominal interest rate is

A) 1 percent.

B) 9 percent.

C) 20 percent.

D) .80 percent.

E) 1.25 percent.

63) If the real interest rate is 7 percent when the nominal interest is 12 rate is percent, the inflation rate is

A) -5 percent.

B) 5 percent.

C) 19 percent.

D) 1.7 percent.

E) 7 percent.

64) If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was acquired was 3 percent but has since increased and is now 8 percent per year; the current real interest rate is

A) 14 percent per year.

B) 6 percent per year.

C) 0 percent per year.

D) -2 percent per year.

E) 8 percent per year.

65) The table above has information about the CPI, nominal wage rate, and nominal interest rate for the country of Syldavia for the years 2010 to 2012. The reference base year is 2010. The inflation rate in Syldavia from 2010 to 2011 was

A) -5.0 percent.

B) 5.0 percent.

C) 9.5 percent.

D) 3.0 percent.

E) -9.5 percent.

66) The table above has information about the CPI, nominal wage rate, and nominal interest rate for the country of Syldavia for the years 2010 to 2012. The reference base year is 2011. The inflation rate in Syldavia from 2011 to 2012 was

A) 8.0 percent.

B) 8.4 percent.

C) 3.0 percent.

D) 4.0 percent.

E) 10.3 percent.

67) The table above has information about the CPI, nominal wage rate, and nominal interest rate for the country of Syldavia for the years 2010 to 2012. The reference base year is 2010. The real wage rate in Syldavia during 2011 was

A) $14.00.

B) $15.00.

C) $15.79.

D) $14.22.

E) $14.25.

68) The table above has information about the CPI, nominal wage rate, and nominal interest rate for the country of Syldavia for the years 2010 to 2012. The reference base year is 2010. The real interest rate in Syldavia during 2012 was

A) 2.8 percent.

B) 5.2 percent.

C) 9.0 percent.

D) 0.6 percent.

E) 8.4 percent.

69) The CPI was 225 in 2008 and 232.2 in 2009.  The nominal interest rate during this period was 1.4 percent.  What was the real interest rate during this period? 

A) 3.2 percent

B) 1.8 percent

C) 4.6 percent

D) -3.2 percent

E) -1.8 percent

70) If we look at real and nominal interest rates in the United States since 1971, we see that

A) the nominal interest rate has always been less than the real interest rate because of inflation.

B) the real interest rate has almost always been less than the nominal interest rate because of inflation.

C) at times the nominal interest rate has been greater than the real interest rate and at times has been less than it.

D) the difference between the nominal and real interest rates has widened during the 1990s because of inflation.

E) both the nominal and real interest rates were negative in the highly inflationary 1970s.