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The Difference Between Nominal and Real Interest Rates Is That

Question 11

Multiple Choice

The difference between nominal and real interest rates is that


A) real interest rates are almost always greater than nominal interest rates.
B) real interest rates are what you get after having adjusted nominal rates for inflation.
C) nominal interest rates are what lenders receive and real interest rates are what borrowers pay.
D) nominal interest rates are what borrowers pay and real interest rates are what lenders receive.

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