Which of the Following Statements Is Correct

question 78

Multiple Choice

Which of the following statements is correct?

• A) Nominal interest rate = Real interest rate - Inflation rate
• B) Nominal interest rate = Real interest rate + Inflation rate
• C) Nominal interest rate = Inflation rate - Real interest rate
• D) Nominal interest rate = Inflation rate + Price index
• E) Nominal interest rate = Inflation rate ÷ Real interest rate

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