Which statement is false?
A) The prime rate is a nominal interest rate.
B) The prime rate is not adjusted for inflation.
C) The realized real interest rate adjusts the nominal interest rate to remove the effects of inflation.
D) Real interest rate equals nominal interest rate divided by inflation rate.
E) In the last half of 2009, the real interest rate was 0.25 percent, close to zero.
Correct Answer:
Verified
Q148: Nominal interest rates can never be less
Q154: Which statement is false?
A) The prime rate
Q155: Quantitative easing
A) floods the financial system with
Q156: A monetary policy to accelerate the economy
Q157: Quantitative easing
A) floods the financial system with
Q158: The quantity theory of money predicts that
Q160: When real GDP is less than potential
Q161: When most people expect inflation,
A) their expectations
Q162: The quantity theory of money assumes that
Q163: Assets are what you owe or spend,
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