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Which of the Following Statements Is False

Question 56

Multiple Choice

Which of the following statements is false?


A) Interest would not exist in a barter (moneyless) economy because there is no money in a barter economy.
B) The real interest rate is equal to the nominal interest rate minus the expected inflation rate.
C) The source of monopoly profits is often high barriers to entry.
D) The nominal interest rate will equal the real interest rate only when the expected inflation rate is zero.

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