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    Principles of Economics Study Set 1
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    Exam 18: Measuring the Price Level and Inflation
  5. Question
    The Real Rate of Return on Holding Cash Is Equal
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The Real Rate of Return on Holding Cash Is Equal

Question 38

Question 38

Multiple Choice

The real rate of return on holding cash is equal to:


A) the nominal interest rate.
B) the real interest rate.
C) the expected inflation rate.
D) zero minus the inflation rate.

Correct Answer:

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