Which Statement Is False

question 213

Multiple Choice

Which statement is false?

• A) The prime rate is a nominal interest rate.
• B) The prime rate is 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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