Which of the Following Statements Is True

question 193

Multiple Choice

Which of the following statements is true?

• A)Nominal interest rate = real interest rate - expected inflation rate.
• B)Nominal interest rate = real interest rate + expected inflation rate.
• C)Real interest rate = nominal interest rate + expected inflation rate.
• D)Expected inflation rate = nominal interest rate + real interest rate.

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Definitions:

Affiliation

The connection or association between an individual or organization and another entity, often for mutual benefit.

Achievement

A significant accomplishment or attainment of a goal, often recognized or rewarded.

Safety

The state of being safeguarded against or not likely to experience harm, danger, or damage.

Power

The ability or capacity to influence the behavior of others or the course of events, often through authority, control, or persuasion.