Multiple Choice
If the nominal interest rate is 4 percent and the inflation rate is 1 percent, then the real rate of interest is
A) 1 percent.
B) 3 percent.
C) 4 percent.
D) 5 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q24: It is difficult to determine expected real
Q25: As the real interest rate _, the
Q26: Scenario 12.1: Jennifer has decided to give
Q27: The theory of investment that emphasizes the
Q28: At an interest rate of 6 percent,
Q30: Deposit insurance is a protection for bank
Q31: As real rates of interest increase in
Q32: Suppose that a firm can invest $100
Q33: If the real interest rate is 4
Q34: Explain why financial intermediaries are necessary to