The nominal rate of interest is 3% and the anticipated rate of inflation is 4%. What is the real rate of interest?
A) 1%
B) -1%
C) 4%
D) 9%
Correct Answer:
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Q334: The nominal rate of interest is
A) the
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A) they prefer earlier
Q336: When interest rates allocate capital
A) many worthwhile
Q337: The real rate of interest is 2%
Q338: The real rate of interest is
A) equal
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Q341: A firm is considering an investment that
Q342: The real interest rate is the
A) nominal
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Q344: The present value of a sum to
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