The Real Rate of Return on Holding Cash Is

question 172

Multiple Choice

The real rate of return on holding cash is

• A) the nominal interest rate.
• B) the real interest rate.
• C) the expected inflation rate
• D) the unexpected inflation rate.
• E) the negative of the inflation ratE.

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Definitions:

Otolith Organs

Structures in the vestibular system that detect linear accelerations of the head and contribute to the sensation of gravity and motion.

Touch Receptors

Sensory nerve endings in the skin that respond to tactile stimuli, allowing the sensation of touch.

Cutaneous Sense

The sensory system related to the skin, involving perception of touch, pressure, temperature, and pain.

Olfactory

Pertains to the sense of smell.