- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 44. Economics and Investment Markets
- Subject 2. Default-Free Interest Rates and Economic Growth
CFA Practice Question
A higher GDP growth should lead to an increase in ______.
B. real default-free interest rate
C. risk premiums
A. inflation rate
B. real default-free interest rate
C. risk premiums
Correct Answer: B
Note that a nominal interest rate consists of a real rate and an inflation premium.
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