Solved

The Real Interest Rate

Question 39

Multiple Choice

The real interest rate


A) can never be negative.
B) is approximately equal to the nominal interest rate plus the inflation rate.
C) is approximately equal to the nominal interest rate minus the inflation rate.
D) is positively related to the inflation rate.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q34: If the nominal interest rate is 8

Q35: If Ann's disposable income increases, her saving

Q36: If the real interest rate is above

Q37: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q38: When the inflation rate is positive, the<br>A)

Q40: What are the factors that change investment

Q41: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q42: France's government is running a budget deficit.

Q43: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above

Q44: If the Ricardo-Barro effect is present, a