Which One of These Statements Is Incorrect

question 13

Multiple Choice

Which one of these statements is incorrect?

• A) Real cash flows must be discounted at a real discount rate.
• B) (1 + real rate of interest) = (1 + nominal rate of interest)/(1 + inflation rate)
• C) The actual real rate of interest almost equals "nominal rate of interest - inflation rate."
• D)Inflation rate = Nominal rate/Real rate - 1

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Definitions:

Century

A period of one hundred years, often used as a marker for significant historical events, developments, or changes over time.

Antimiscegenation

Laws or practices that forbid marriage or sexual relations between individuals of different races.

Skin Tones

The natural color of human skin which varies widely among individuals and is often categorized in social terms.

Native Americans

Indigenous peoples of the United States, including numerous tribes, who were the original inhabitants of the land prior to European colonization.