Let $\pi$ = Inflation Rate, R = Real Interest Rate, and I

question 32

Multiple Choice

Let $\pi$ = inflation rate, r = real interest rate, and i = nominal interest rate. Which of the following statements is (are) TRUE?

• A) \(\pi\) = (r)(i)
• B) \(\pi\)= i + r
• C) r = i - \(\pi\)
• D) i = r - \(\pi\)

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