Real interest rates are difficult to measure because
A)data on them are not available in a timely manner.
B)real interest rates depend on the hard-to-determine expected inflation rate.
C)they fluctuate too often to be accurate.
D)they cannot be controlled by the Fed.

Question

Quizplus · Accepted Answer

Real interest rates are calculated by subtracting the expected inflation rate from the nominal interest rate. However, expected inflation rates are difficult to determine accurately, making it challenging to measure real interest rates.

Real Interest Rates Are Difficult to Measure Because