Multiple Choice
Which of the following statements is true?
A) Nominal interest rate = real interest rate - expected inflation rate.
B) Nominal interest rate = real interest rate + expected inflation rate.
C) Real interest rate = nominal interest rate + expected inflation rate.
D) Expected inflation rate = nominal interest rate + real interest rate.
E) Expected inflation rate = real interest rate - nominal interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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