How Is the Real Interest Rate Determined

question 93

Multiple Choice

How is the real interest rate determined?

• A)By subtracting the bank rate from the nominal interest rate.
• B)By dividing the nominal interest rate by the Consumer Price Index.
• C)By subtracting the rate of inflation from the nominal interest rate.
• D)By multiplying the nominal interest rate by the rate of inflation.

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Definitions:

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The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through experience, study, or teaching.

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