Which of the following statements is correct?
A)As a group,economists see no purpose in distinguishing between the nominal interest rate and the real interest rate.
B)The interest rate that is usually reported is the nominal interest rate.
C)If the nominal interest rate increases and the inflation rate remains unchanged,then the real interest rate decreases.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The statement "The interest rate that is usually reported is the nominal interest rate" is the only correct statement among the given options. Economists do see a purpose in distinguishing between nominal and real interest rates, and if the nominal interest rate increases while the inflation rate remains unchanged, then the real interest rate increases (not decreases as stated in option C). Therefore, options A and C are incorrect.

Which of the Following Statements Is Correct