Which of the Statements Below Is FALSE Regarding Interest Rates

question 13

Multiple Choice

Which of the statements below is FALSE regarding interest rates in the period 1950-1999?

• A)Inflation averaged 4.05%.
• B)The real rate averaged 1.18%.
• C)The default premium averaged 7.05%.
• D)The maturity premium averaged 1.28% (for twenty-year maturity differences).

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