Which of the Following Statement(s)is(are)true

Which of the following statement(s) is(are) true?
I.The real rate of interest is determined by the supply and demand for funds.
II.The real rate of interest is determined by the expected rate of inflation.
III.The real rate of interest can be affected by actions of the Bank of Canada.
IV.The real rate of interest is equal to the nominal interest rate plus the expected rate of inflation.

A) I and II only.
B) I and III only.
C) III and IV only.
D) II and III only.
E) I,II,III,and IV only

Correct Answer:

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