Which of the following factors would not be expected to affect the nominal interest rate?
A)The supply of loans
B)The demand for loans
C)The coupon rate on previously issued government bonds
D)The expected rate of inflation

Question

Quizplus · Accepted Answer

The nominal interest rate is determined by the supply and demand for loans and is also affected by the expected rate of inflation. However, the coupon rate on previously issued government bonds is a past event and does not affect the current market for loans.

Which of the Following Factors Would Not Be Expected to Affect