Question

When a bank provides a loan for a large consumer purchase, the nominal interest rate is

the real interest rate minus expected inflation

the sum of actual inflation and the real interest rate

set with no consideration of expected inflation

always less than the real interest rate

the advertised rate, unadjusted for inflation

Points earned on this question: 0

Answer 1

E) the advertised rate, unadjusted for inflation

Answer 2

the advertised rate, unadjusted by inflation

Step-by-step explanation: