The Nominal Interest Rate Is

question 38

Multiple Choice

The nominal interest rate is

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

---

Definitions:

Swords

Edged weapons that are longer than knives, with a long metal blade and a hilt, used historically in warfare or dueling.

Total Cost

The sum of fixed costs and variable costs incurred in the production of goods or services.

Units of Output

The quantity of goods or services produced by a firm or industry.

Total Costs

The sum of all the costs incurred in the production of goods or services, including both fixed and variable costs.