Interest rates are difficult to measure because ________.
A) data on them are not available in a timely manner
B) real interest rates depend on the hard-to-determine expected inflation rate
C) they fluctuate too often to be accurate
D) they cannot be controlled by the Bank of Canada

Question

Quizplus · Accepted Answer

Real interest rates, which take into account expected inflation, are difficult to measure because the expected inflation rate is hard to determine. Interest rates themselves are reported regularly and are not difficult to access, but determining the real interest rate requires knowledge of inflation expectations.

Interest Rates Are Difficult to Measure Because ________