Which of the following factors would not be expected to affect the nominal interest rate
A)The supply of loanable funds
B)The demand for loanable funds
C)The coupon rate on previously issued government bonds
D)The expected rate of inflation
E)Government spending and borrowing

Question

Quizplus · Accepted Answer

The nominal interest rate is affected by supply, demand, government actions, and inflation.Coupon rates on previously issued government bonds reflect historical interest rates but should not affect the current level of interest rates.

Which of the Following Factors Would Not Be Expected to Affect