Business, 02.06.2021 21:40 levilugar

1. An increase in the interest rate makes all households worse off. a. True
b. False

2. If a household is neither borrowing nor lending, any change in the interest rate makes them better off.
a. True
b. False

3. The difference between the price of a nominal bond paying off $1 in nominal terms tomorrow and the price of a real bond paying off $1 in real terms tomorrow is the price level.
a. True
b. False

Answers: 1

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1. An increase in the interest rate makes all households worse off. a. True
b. False

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