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AP Macroeconomics
Unit 4 – Financial Sector
Topic 4.2
Which of the following statements is true about nominal interest rates?
They are always lower than the real interest rate.
They are the same as the expected inflation rate.
They are based off of the crossing of supply and demand in the loanable funds market.
They do not account for inflation.
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AP Macroeconomics - 4.2 Nominal vs. Real Interest Rates
Key terms
Nominal interest rates
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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