The Real Rate of Interest Is

question 113

Multiple Choice

The real rate of interest is

• A)the difference between the stated interest rate and the rate of growth of real GDP.
• B)the difference between the stated interest rate and the expected rate of inflation.
• C)the rate of interest on Treasury bills.
• D)the sum of the stated interest rate plus the expected inflation rate.
• E)the same as the federal funds rate.

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Definitions:

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