When making decisions about saving and borrowing,people care most about

Question

Quizplus · Accepted Answer

People care most about the real rate of interest, which is the nominal rate of interest adjusted for inflation. This is because the real rate of interest reflects the true return on savings or cost of borrowing in terms of purchasing power. The inflation rate can erode the value of savings, while the nominal rate of interest may not keep up with inflation. Therefore, the real rate of interest is a better measure for making informed decisions about saving and borrowing.

When Making Decisions About Saving and Borrowing,people Care Most About