The Most Significant Problem in Trying to Empirically Measure the Real

question 61

Multiple Choice

The most significant problem in trying to empirically measure the real rate of interest is that

• A)interest rates fluctuate so much from day to day.
• B)there are so many different nominal interest rates.
• C)expected inflation is unobservable.
• D)banks infrequently change the prime rate of interest.
• E)there are so many different types of bonds.

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