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

My account
Edit my Profile
Private messages
My favorites

Ask a Question
Questions
Unanswered
Tags
Categories
Ask a Question

asked Sep 10, 2023 61.0k views

4 votes

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