The Real Interest Rate Is

question 35

Multiple Choice

The real interest rate is:

• A)the percentage increase in money that the lender receives on a loan.
• B)the nominal rate less the rate of inflation.
• C)also called the after-tax interest rate.
• D)usually higher than the nominal interest rate.

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Definitions:

Frictional Unemployment

Temporary unemployment existing in a job market due to time taken by workers to move between jobs, including new or re-entering workers.

Structural Unemployment

Unemployment arising from a persistent mismatch between the skills of workers and the requirements of jobs, often exacerbated by technology or market changes.

Frictional Unemployment

Temporary unemployment experienced by individuals transitioning between jobs, seasons, or moving to new locations.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded.