The Real Rate of Interest Is

question 200

Multiple Choice

The real rate of interest is

• A)the nominal interest rate plus the inflation rate.
• B)the nominal interest rate minus the inflation rate.
• C)the interest rate determined by the supply and demand in the money market.
• D)the nominal interest rate.
• E)the interest rate stated on a loan contract.

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Definitions:

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A unit of length in the metric system equal to one millionth of a meter, also known as a micrometer.

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