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    Macroeconomics Study Set 47
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    Exam 14: Expectations: the Basic Tools
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    Because the Nominal Interest Rate Is Always Positive, the Discount
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Because the Nominal Interest Rate Is Always Positive, the Discount

Question 44

Question 44

Multiple Choice

Because the nominal interest rate is always positive, the discount factor is always:


A) zero.
B) one.
C) negative.
D) greater than one.
E) less than one.

Correct Answer:

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