The real interest rate ________.
A)is the cost of borrowing adjusted for inflation
B)keeps the market for saving and investment in equilibrium
C)describes the real benefit of saving
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The real interest rate represents the cost of borrowing adjusted for inflation, and it keeps the market for saving and investment in equilibrium. Additionally, it also describes the real benefit of saving. Therefore, all three statements are correct, making option D the correct answer.

The Real Interest Rate ________