Which statement is false?
A) The prime rate is a real 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 minus the inflation rate.
E) In the last half of 2009, the real interest rate was 0.25 percent, close to zero.
Correct Answer:
Verified
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