Q 332

The real rate of interest is
A) the interest rate observed in the market.
B) the interest rate observed in the market minus the anticipated inflation rate.
C) not influenced by inflation.
D) a value that depends upon the stock market.

Q 333

The real rate of interest equals 3% and the expected rate of inflation equals 2%. The nominal rate of interest equals
A) 2%.
B) 3%.
C) -1%.
D) 5%.

Q 334

The real rate of interest equals 2%, and the expected rate of inflation equals 2%. The nominal rate of interest is
A) -2%.
B) 2%.
C) 4%.
D) 0%.