Which of the following factors influence the real rate of interest?
A) investor's positive time preference
B) the gold supply
C) return on capital investments
D) the rate of inflation
E) both a and c

Question

Quizplus · Accepted Answer

The real rate of interest is influenced by the investor's positive time preference (A) and the return on capital investments (C), as these factors determine the compensation investors require for deferring consumption and the productivity of capital.

Which of the Following Factors Influence the Real Rate of Interest