Which of the Following Statements About the Nominal Interest Rate

question 55

Multiple Choice

Which of the following statements about the nominal interest rate (i) is correct?

• A) It is the interest rate measured in terms of goods.
• B) It is always less than the real interest rate.
• C) It is the type of interest rate typically reported in the financial pages of newspapers.
• D) It is equal to the expected rate of inflation.
• E) It is equal to the real interest rate minus the rate of inflation.

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