B. 6%.C. 35%.D. 21%.E.5%.11 - 6 = 5%.
AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateTopic: Risk27.In words, the real rate of interest is approximately equal to
AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: Rates of Return28.If the Federal Reserve lowers the discount rate, ceteris paribus, the equilibrium levels of funds lent will __________ and the equilibrium level of real interest rates will ___________. 5-15