What kind of economic variables are the interest rates when adjusted for the effects of inflation?
A)nominal variables
B)real variables
C)stock variables
D)flow variables

Question

Quizplus · Accepted Answer

Interest rates adjusted for inflation are known as real interest rates. Real interest rates reflect changes in the purchasing power of money, making them a real variable. Nominal variables are not adjusted for the effects of inflation and can be misleading in economic analysis. Stock variables refer to the amount of assets at a specific point in time, while flow variables refer to the change over a period of time.

What Kind of Economic Variables Are the Interest Rates When