Quizzol

QUESTION:

Which of the following statements is correct?

a. The real interest rate is the sum of the nominal interest rate and the inflation rate.

b. The real interest rate is the nominal interest rate minus the inflation rate.

c. The nominal interest rate is the inflation rate minus the real interest rate.

d. The nominal interest rate is the real interest rate minus the inflation rate.

e. None of the answer choices are correct.

ANSWER:

b. The real interest rate is the nominal interest rate minus the inflation rate.

Posted by Cleveland on September 9, 2024