The real rate of interest is the
a. money rate of interest plus the inflationary premium.
b. money rate of interest minus the inflationary premium.
c. yield one can expect to receive on loanable funds without taking significant risk.
d. risk component associated with the ownership of real assets.
B
You might also like to view...
Which of the following is a characteristic of monopoly?
A) The firm faces competition from many other firms. B) The firm produces a product that has many close substitutes. C) There are barriers to enter the market. D) The firm's demand is perfectly elastic. E) The firm produces a product identical to that produced by its many competitors.
Which of the following firms is most likely to spend on innovation?
A) A perfectly competitive firm B) A monopoly with absolutely no competition C) A firm that is the only controller of a key resource necessary for production D) A firm that enjoys some monopolistic power, but faces strong competition from its rivals