The real interest rate:
a. Is always lower than the nominal interest rate.
b. Is strongly affected by expected inflation.
c. Equals the nominal interest rate plus the expected inflation.
d. Is determined by lenders solely.
e. Reflects a nation's time value of money.
.E
Economics
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Suppose the nominal interest rate is 1% and the rate of inflation is 3%. The real interest rate is therefore
A) -2%. B) 2%. C) 4%. D) 5%.
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Zero economic profits would most likely exist in which market environment?
A) Pure monopoly B) Oligopoly C) Perfect competition D) Any market structure riddled with uncertainty E) None of the above.
Economics