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Match the Following Terms to the Correct Definitions

question 42

Multiple Choice

Match the following terms to the correct definitions.
-The United States Congress required CMS through the Balanced Budget Act of 1997 to begin applying a slightly different payment methodology when transferring patients from the acute care to the postacute care setting


Definitions:

Nominal Interest Rate

The interest rate before adjustment for inflation; the stated rate on a loan or investment.

Rate of Inflation

The uplift in the general cost of products and services in an economy over an allotted period.

Consumer Price Index

A device that evaluates the average adjustment over time in the spending of urban consumers on a carefully selected series of consumer goods and services.

Real Interest Rate

The interest rate that has been modified to take inflation into account, representing the actual cost of borrowing and the genuine return on investments.

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