Which of the following equations is correct?
A) Real interest rate = Nominal interest rate + Inflation rate
B) Real interest rate = Nominal interest rate − Inflation rate
C) Real interest rate = Nominal interest rate × Inflation rate
D) Real interest rate = Nominal interest rate ÷ Inflation rate
Correct Answer:
Verified
Q12: Economic agents who borrow funds are known
Q13: Consider two economies: A and B.The nominal
Q14: Credit is _.
A) the loan that a
Q15: The real interest rate is equal to
Q16: Assuming all else equal,a rise in the
Q18: Which of the following statements is true?
A)
Q19: If an individual borrows $100 and pays
Q20: What is meant by the term "rate
Q21: The credit demand curve is _.
A) vertical
B)
Q22: An optimizing economic agent will use the
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