The real risk free rate depends on the real growth in the economy and for short period by temporary tightness or ease in capital markets.

Name: The real risk free rate depends on the real growth in the economy and for short period by temporary tightness or ease in capital markets.
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Question

Quizplus · Accepted Answer

The real risk free rate is influenced by the state of the economy in the long run, and can be impacted in the short term by factors such as changes in capital markets. Therefore, the statement is true.

The Real Risk Free Rate Depends on the Real Growth