The real rate of interest is
A) the nominal interest rate plus the inflation rate.
B) the nominal interest rate minus the inflation rate.
C) the interest rate determined by the supply and demand in the money market.
D) the nominal interest rate.
Correct Answer:
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Q238: The stated interest rate on a loan
Q239: Table 9-20 Q240: Suppose you lend $1,000 at an interest Q241: Deflation occurs when Q242: What is the difference between the nominal Q244: You agree to lend $1,000 for one Q245: The nominal interest rate will be less Q246: You borrow $10,000 from a bank for Q247: You borrow $10,000 from a bank for Q248: During the 1990s,Japan experienced periods of deflation
A)there is a sustained increase
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