Two Factors That Influence the Nominal Risk-Free Rate Are

question 3

Multiple Choice

Two factors that influence the nominal risk-free rate are

• A) the relative ease or tightness in capital markets and the expected rate of inflation.
• B) the expected rate of inflation and the set of investment opportunities available in the economy.
• C) the relative ease or tightness in capital markets and the set of investment opportunities available in the economy.
• D) time preference for income consumption and the relative ease or tightness in capital markets.
• E) time preference for income consumption and the set of investment opportunities available in the economy.