2696EconomicsMedium
Which of the following statements is correct?
Anone of these answers
BThe real interest rate is the nominal interest rate minus the inflation rate
CThe nominal interest rate is the inflation rate minus the real interest rate
DThe nominal interest rate is the real interest rate minus the inflation rate.
Correct answer
B. The real interest rate is the nominal interest rate minus the inflation rate
Explanation
The correct answer is The real interest rate is the nominal interest rate minus the inflation rate.