Which Formula Below Best Expresses the Real Interest Rate, (R)

question 109

Multiple Choice

Which formula below best expresses the real interest rate, (r) ?

• A) i = r - e
• B) r = i + e
• C) r = i - e
• D) e = i + r

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Definitions:

Payroll Tax

Fees assessed on employers and their employees, calculated frequently as a fraction of the salaries employees earn.

Labor Market

A marketplace in which employers find workers and workers find jobs, governed by the supply and demand for labor.

Payroll Tax

Exactions applied to employers or their staff members, often a percentage of the earnings paid out to the workforce.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, within an economy.