The nominal interest rate is:
A) the everyday notion of the interest rate adjusted for inflation.
B) the reported interest rate, adjusted for the effects of inflation.
C) the amount of interest the bank charges you for saving or pays you for borrowing.
D) the amount of interest the bank pays you for saving or charges you for borrowing.
Correct Answer:
Verified
Q91: Suppose the nominal interest rate is 10
Q92: In order to calculate the real interest
Q93: Subtracting the inflation rate from the nominal
Q94: The nominal interest rate is:
A) not adjusted
Q95: The real interest rate is:
A) adjusted for
Q97: If the value of your savings is
Q98: Tax distortions happen because tax laws take
Q99: Being penalized via taxes for making more
Q100: When L.L. Bean decides to increase its
Q113: Deflation is:
A) a sustained rise in the
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