Which One of the Following Best Describes a Real Interest

question 48

Multiple Choice

Which one of the following best describes a real interest rate?

• A)current rate on a U.S. Treasury bill
• B)nominal rate minus the risk premium on an individual security
• C)market return minus the risk-free rate
• D)nominal rate minus inflation
• E)historical rate rather than a projected rate

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Irrational Fear

An intense and persistent fear of specific situations, objects, activities, or persons that is excessive and unreasonable, given the reality of the threat.

Phobia

An extreme or irrational fear or aversion to something, often leading to avoidance behaviors.

Conditioned Stimulus

A stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.