The Nominal Interest Rate Minus the Expected Rate of Inflation

question 90

Multiple Choice

The nominal interest rate minus the expected rate of inflation

• A)defines the real interest rate.
• B)is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate.
• C)is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate.
• D)defines the discount rate.