The Real Interest Rate at Which, in the Absence of Any

question 87

Multiple Choice

The real interest rate at which, in the absence of any shock, the demand for goods and services equals the natural rate of output is called the _____ rate of interest.

• A) ex ante
• B) ex post
• C) natural
• D) nominal

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Definitions:

360-Day Year

An accounting convention that uses 360 days in a year for calculating interest on loans and other financial instruments.

Commission

A service charge assessed by a broker or agent for providing assistance in the execution of a transaction.

Accrued Interest

Interest that has been earned but not yet paid.

Semiannually

Occurring twice a year, typically used in the context of payments, interest calculations, or reports.