Let R Denote the Real Interest Rate and I Denote $\pi$

question 8

Multiple Choice

Let R denote the real interest rate and i denote the nominal interest rate; these two interest rates are related by:

• A) i = \(\pi\).
• B) i =R - \(\pi\).
• C) i = R + \(\pi\).
• D) i = R/ \(\pi\).
• E) None of these answers is correct.

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