To determine the real interest rate in the data, one should take ...

[Caiter2013]

To determine the real interest rate in the data, one should take the interest rate on government debt
 
  A) and leave it at that.
  B) and add the inflation rate.
  C) and subtract the inflation rate.
  D) and divide by the inflation rate.

Question 2

The notion that expectations will be identical to optimal forecasts using all available information is known as ________.
 
  A) adaptive expectations
  B) irrational expectations
  C) rational expectations
  D) tertiary expectations

[Jayson]

Answer to Question 1

C

Answer to Question 2

C

[Caiter2013]

Thanks for the timely response, appreciate it

[irishcancer18]

Gracias!