The real interest rate is the:
A. the interest rate charged on a loan in dollar terms.
B. market interest rate.
C. annual percentage increase in the purchasing power of a financial asset.
D. annual percentage increase in the nominal value of a financial asset.
Answer: C
Economics
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A) M0. B) M1. C) M2. D) M3.
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In an open economy, the government purchases multiplier will be larger the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import. C) smaller the marginal income tax rate. D) All of the above are correct.
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