The nominal interest rate is:
A) not adjusted for inflation.
B) the interest rate paid by savers.
C) the interest rate paid to borrowers.
D) the price level adjusted interest rate.

Question

Quizplus · Accepted Answer

The nominal interest rate is not adjusted for inflation, meaning it does not take into account changes in the general price level over time. It simply represents the interest rate charged or paid on a loan or investment.

The Nominal Interest Rate Is