Question:
Nominal Interest Rate =__________
Nominal Interest Rate =__________
Updated On: Oct 29, 2024
- Real Interest Rate × Inflation Rate
- Real Interest Rate – Inflation Rate
- Real Interest Rate / Inflation Rate
- Real Interest Rate + Inflation Rate
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The Correct Option is D
Solution and Explanation
According to the Fisher equation, the nominal interest rate equals the real interest rate plus the inflation rate.
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