"Grossing-up" nominal interest rates means:
A)adding up all of the interest rates at major institutions in a country and dividing by the number of institutions considered to determine an average interest rate.
B)determining the differential in interest rates in one country compared to interest rates in another country.
C)reducing nominal rates by the inflation rate to compensate for the loss of purchasing power attributed to inflation.
D)increasing nominal rates by the inflation percentage to determine the real purchasing power of consumers.

Question

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The Answer of "Grossing-up" nominal interest rates means:
A)adding up all of the interest rates at major institutions in a country and dividing by the number of institutions considered to determine an average interest rate.
B)determining the differential in interest rates in one country compared to interest rates in another country.
C)reducing nominal rates by the inflation rate to compensate for the loss of purchasing power attributed to inflation.
D)increasing nominal rates by the inflation percentage to determine the real purchasing power of consumers.

"Grossing-Up" Nominal Interest Rates Means