The real interest rate is:
A)the percentage increase in money that the lender receives on a loan.
B)the percentage increase in purchasing power that the lender receives on a loan.
C)also called the after-tax interest rate.
D)usually higher than the nominal interest rate.
Answer:B
The real interest rate is:
A)the percentage increase in money that the lender receives on a loan. B)the percentage increase in purchasing power that the lender receives on a loan. C)also called the after-tax interest rate. D)usually higher than the nominal interest rate.