Question 9
If expected inflation equals nominal interest rate, then real interest rate is
Positive
Negative
Zero
One
If expected inflation equals nominal interest rate, then real interest rate is
Positive
Negative
Zero
One
Correct answer
Zero
Question 9 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.