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    Exam 22: The Goals of Macroeconomic Policy
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    The Arithmetic Difference Between the Nominal Rate of Interest and the Expected
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The Arithmetic Difference Between the Nominal Rate of Interest and the Expected

Question 126

Question 126

Multiple Choice

The arithmetic difference between the nominal rate of interest and the expected rate of inflation is the


A) expected interest rate.
B) real interest rate.
C) implied interest rate.
D) contractual interest rate.

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