The difference between the interest rate on a loan and the inflation rate is the

A. expected interest rate.
B. inflation premium.
C. nominal interest rate.
D. real interest rate.

Answer: D

Economics

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Discuss the effects of government deficits on the current account

What will be an ideal response?

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The shape of the aggregate demand curve does not tell us anything about how the total dollar value of spending will ultimately be divided between output and prices. For this we need

A) information about the standard of living in the country. B) information that only the Consumers' Price Index can provide. C) an aggregate supply curve. D) to know how far from the origin the aggregate demand curve is.

Economics