The Money Rate of Interest Is the

question 16

Multiple Choice

The money rate of interest is the

• A) real rate of interest minus the inflationary premium.
• B) real rate of interest plus the inflationary premium.
• C) real rate of interest divided by the inflationary premium.
• D) inflationary premium minus the real interest rate.

---

Definitions:

Confidence Interval

A span of values calculated from sample statistics, which is likely to embody the value of a hidden population parameter.

Mean

A measure of central tendency which is calculated by adding up all the values in a data set and then dividing by the number of values.

Population Standard Error

The standard deviation of the distribution of a sample mean over multiple samples from the same population.