The real interest rate is a more accurate measure of the cost of borrowing than the nominal rate.

Name: The real interest rate is a more accurate measure of the cost of borrowing than the nominal rate.
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Quizplus · Accepted Answer

The real interest rate takes into account the effects of inflation, providing a more accurate measure of the true cost of borrowing by reflecting the purchasing power of the money being borrowed or saved.

The Real Interest Rate Is a More Accurate Measure of the Cost