The Nominal Rate of Return Minus the Inflation Rate Is

question 328

Multiple Choice

The nominal rate of return minus the inflation rate is called the:

• A) Compound rate.
• B) Indexed rate.
• C) Approximate real rate.
• D) Exact real rate.
• E) Base rate.

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Definitions:

Income

The money received by an individual or business for work done, from investments, or from the sale of goods or services.

Cross-Price Elasticity

An index indicating the variation in demand for a particular item as a result of the price alteration of a different item.

Complements

Goods or services that are used together, such that the increase in demand for one results in an increase in demand for the other.

Bacon and Eggs

A popular breakfast dish in various cultures consisting of fried bacon and eggs.