The real rate of return is also referred to as the real:
A) liability rate.
B) short-term rate.
C) estimated rate.
D) inflation rate.
E) interest rate.

Question

Quizplus · Accepted Answer

The real rate of return is also referred to as the real interest rate. This rate adjusts the nominal interest rate (the rate before inflation) to account for the effects of inflation, providing a more accurate measure of the actual earning power of an investment.

The Real Rate of Return Is Also Referred to as the Real