midterm9.docx - 10 The real interest rate is defined as the actual interest rate fixed-rate on consumer loans nominal interest rate minus the inflation

midterm9.docx - 10 The real interest rate is defined as the...

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10. The real interest rate is defined as the actual interest rate. fixed-rate on consumer loans. nominal interest rate minus the inflation rate. expected interest rate minus the inflation rate. ANS Incorrect. The nominal or actual interest rate is not adjusted for inflation. Incorrect. A fixed rate is not adjusted for inflation. Correct. The real interest rate is defined as the nominal interest rate minus the inflation rate. Incorrect. An expected interest rate is not the actual nominal rate. 11. If the inflation rate exceeds the nominal rate of interest, the real interest rate is negative. lenders lose. savers lose. all of the answers are correct. ANS Incorrect. All of the answers are correct. Incorrect. All of the answers are correct. Incorrect. All of the answers are correct. Correct. All of the answers are correct. ANS Incorrect. The base year in the consumer price index (CPI) is a year chosen as a reference for prices in all other years.
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  • Fall '16
  • janu

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