Chapter14: Money And The Economy
Section: Chapter Questions
Problem 6WNG
Related questions
Question
The real interest rate is
1 |
the market rate of interest charged by banks. |
|
2 |
the rate of interest that banks charge their best customers. |
|
3 |
the nominal rate of interest minus the inflation rate that individuals expect. |
|
4 |
the expected inflation rate minus the cost of borrowing. |
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