The Real Interest Rate

question 13

Multiple Choice

The real interest rate:

• A)is the nominal interest rate + inflation.
• B)greater than the nominal interest rate when inflation is greater than0.
• C)is the interest rate expressed in current dollar terms.
• D)is the inflation adjusted interest rate.

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Definitions:

Franchising

A method of expanding a business and distributing goods and services through a licensing relationship.

Franchisee

A franchisee is an individual or company that has been granted the right by a franchisor to carry out business under the franchisor's brand and operational system.