Which Statement Is False

question 86

Multiple Choice

Which statement is false?

• A) The prime rate is a real interest rate.
• B) The prime rate is not adjusted for inflation.
• C) The realized real interest rate adjusts the nominal interest rate to remove the effects of inflation.
• D) Real interest rate equals nominal interest rate minus the inflation rate.
• E) In the last half of 2009, the real interest rate was 0.25 percent, close to zero.

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Definitions:

Degrees of Freedom

The number of independent values that can vary in an analysis without violating any constraints.

Point Estimate

A single value or statistic used to estimate the parameter of a population.

Daily Production

The total quantity or volume of goods and services produced within a single day by a company, industry, or economic sector.

Population

The complete set from which data or individuals are drawn for statistical measurement or analysis, distinguishable by specific characteristics.