The real risk-free rate of interest is determined by the Federal Reserve.

Question

Quizplus · Accepted Answer

The real risk-free rate of interest is not determined by the Federal Reserve. It is determined by the supply and demand of capital in the economy and is influenced by various factors such as inflation, economic growth, and market expectations. The Federal Reserve may indirectly affect the real risk-free rate through its monetary policy decisions, but it is not the sole determinant.

The Real Risk-Free Rate of Interest Is Determined by the Federal