Consider an economy in which: the nominal risk-free rate of interest = 8 percent. the expected inflation rate = 2 percent. GDP growth = 4 percent. What is the real risk-free rate of interest? A)6%. B)12%. C)10%. D)4%.
The correct answer was A) 6%. The real risk-free rate of interest equals the nominal risk-free rate of interest minus the expected inflation rate: 8% - 2% = 6%. GDP growth measures the productivity growth in the economy, not the interest rate, so it is ignored in this question.
发表于 2006-4-3 12:27
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