IB Economics HL 3.5.4 Real and Nominal Interest Rates Topic Practice

CourseCourseConceptConceptDocsDocuments

Learn this topic

Study 3.5.4—Real and nominal interest rates conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

Question 1

[Maximum number: 1]

Table 1 shows the gross domestic product (GDP) of the United States of America (USA) economy from 2020 to 2023. The USA is not the fastest growing economy in the world, but it is the largest. It also has the largest budget deficit and the largest current account deficit in the world. As a result, the actions of its central bank, the Federal Reserve, always make news.

Table 1

Table 1

Calculate the real interest rate for households between January 2023 and January 2024.

All question bank results loaded