The rate of return on a risk-free asset should equal the
A) long-run real growth rate of the economy.
B) long-run nominal growth rate of the economy.
C) short-run real growth rate of the economy.
D) short-run nominal growth rate of the economy.
E) prime rate of interest.

Question

Quizplus · Accepted Answer

The rate of return on a risk-free asset is often considered to equal the long-run real growth rate of the economy because it reflects the economy's ability to grow wealth over time without taking on additional risk.

The Rate of Return on a Risk-Free Asset Should Equal