Which of the Following Equations Is Correct

question 121

Multiple Choice

Which of the following equations is correct?

• A) Real interest rate = Nominal interest rate + Inflation rate
• B) Real interest rate = Nominal interest rate − Inflation rate
• C) Real interest rate = Nominal interest rate × Inflation rate
• D) Real interest rate = Nominal interest rate ÷ Inflation rate

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Definitions:

Normative

Relating to an established standard or norm; often used to describe behaviors or conditions that are considered typical within a specific society or group.

Conscientiousness

A personality trait characterized by thoroughness, diligence, and the carefulness of an individual.

Neuroticism

A personality trait characterized by tendencies toward anxiety, moodiness, worry, envy, and jealousy.

Agreeableness

A personality trait characterized by warmth, kindness, and a tendency to cooperate and seek harmony in social interactions.