Two Factors That Influence the Nominal Risk-Free Rate Are;

question 32

Multiple Choice

Two factors that influence the nominal risk-free rate are;

• A) The relative ease or tightness in capital markets and the expected rate of inflation.
• B) The expected rate of inflation and the set of investment opportunities available in the economy.
• C) The relative ease or tightness in capital markets and the set of investment opportunities available in the economy.
• D) Time preference for income consumption and the relative ease or tightness in capital markets.
• E) Time preference for income consumption and the set of investment opportunities available in the economy.

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