The Real Interest Rate Is

question 151

Multiple Choice

The real interest rate is

• A)the difference between the stated, or nominal, interest rate and the expected rate of inflation.
• B)the difference between the stated, or nominal, interest rate and the rate of growth of real GDP.
• C)the sum of the stated, or nominal, interest rate plus the expected inflation rate.
• D)the rate of interest on Treasury bills.
• E)the same as the prime rate.

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Definitions:

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