Multiple Choice
Which of the following best defines the real interest rate (r) ?
A) the amount of goods we must give up next year in order to consume more goods today
B) the amount of dollars we must give up next year in order to consume more goods today
C) the amount of dollars we must give up next year in order to have more dollars today
D) the amount of dollars we must give up today in order to have more dollars next year
E) the amount of dollars we must give up today in order to consume more goods today
Correct Answer:
Verified
Correct Answer:
Verified
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