The Nominal Interest Rate Equals The

question 79

Multiple Choice

The nominal interest rate equals the:

• A)real interest rate minus the inflation rate.
• B)real interest rate plus the inflation rate.
• C)real interest rate divided by the inflation rate.
• D)inflation rate minus the real interest rate.

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Definitions:

Negative Correlation

A link between two variables that involves one increasing while the other decreases, and the inverse relationship.

Inverse Relationship

A correlation between two variables in which one variable increases as the other decreases, and vice versa.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.

Statistical Measure

A quantifiable value representing a summary or characteristic of a set of data, used in analyzing or interpreting data.