1) When the ________ interest rate is low, there are greater incentives to ________ and fewer incentives to ________.
A) nominal; lend; borrow
B) real; lend; borrow
C) real; borrow; lend
D) market; lend; borrow
2) The interest rate that describes how well a lender has done in real terms after the fact is called
The
A) ex post real interest rate.
B) ex ante real interest rate.
C) ex post nominal interest rate.
D) ex ante nominal interest rate.
3) The ________ states that the nominal interest rate equals the real interest rate plus the expected rate of inflation.
A) Fisher equation
B) Keynesian equation
C) Monetarist equation
D) Marshall equation