The cost of borrowing money calculated as a percentage of the amount borrowed is a(n)______ rate.

Question

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Interest rate is the cost of borrowing money expressed as a percentage of the amount borrowed. Fiscal rate refers to government spending and revenue. Inflationary rate indicates the rate at which the general level of prices for goods and services increases over time. Deficit rate reflects the difference between government spending and revenue. Loan rate is a generic term and not specifically related to the cost of borrowing money.

The Cost of Borrowing Money Calculated as a Percentage of the Amount