The Nominal Interest Rate Minus the Expected Rate of Inflation

question 90

Multiple Choice

The nominal interest rate minus the expected rate of inflation

• A)defines the real interest rate.
• B)is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate.
• C)is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate.
• D)defines the discount rate.

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Definitions:

Assignment

The process of setting a value to a variable or entity in programming, using the assignment operator.

#define

A preprocessor directive in C and C++ used to create macro definitions or to declare symbolic constants.

Statement

An instruction that a programming language interpreter can execute.

C

A general-purpose, procedural computer programming language supporting structured programming, lexical variable scope, and recursion.