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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