The real interest rate is equal to the
A) nominal interest rate plus the inflation rate.
B) nominal interest rate minus the inflation rate.
C) nominal interest rate times the inflation rate.
D) nominal interest rate divided by the inflation rate.
E) inflation rate minus the nominal interest rate.
B
Economics
You might also like to view...
Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short II. Raising funds from a large number of depositors III. Creating money by lending all their reserves A) I only B) II only C) I and III D) II and III
Economics
Which of the following has the longest lag time for the Federal Reserve?
a. reducing production output b. increasing employment c. reducing government bonds d. increasing full price levels
Economics