The nominal interest rate minus the expected rate of inflation: "defines the real interest rate" (Option A)
<h3>What is nominal interest rate?</h3>
In business and accounting, the nominal interest rate or nominal rate of interest refers to one of two things: the rate of interest before inflation adjustment, or the rate of interest "as stated" without adjustment for the full effect of compounding.
<h3>What is real interest rate?</h3>
A real interest rate is the observed market interest rate adjusted for inflationary impacts.
It indicates the buying power worth of interest paid on a loan or investment. It also shows a borrower's and lender's rate of time preference.
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Full Question:
The nominal interest rate minus the expected rate of inflation ________.
A) defines the real interest rate
B) is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate
C) is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate
D) defines the discount rate
Answer:
1, 4 & 6 are likely to be correct
Explanation:
1 When the target group is American adults, who very often have landline telephones and cellphones, it can be argued that including them will be more accurate.
4 This may be true; I can imagine that there are people, socioeconomically different, who don´t have (access to) landline phones.
6. Birthday doesn´t have anything to do with age, as suggested in nr. 5 and nr. 7. Birthyear does. The selection of most recent birthday in a household is a good way of selecting at random.
2, 3 and 8 are statements that don´t have any scientifical reasoning.
Vedas is correct Vishnu is correct and dharma is also correct
False, it is rice that they rely on not corn
The 15th Amendment to the U.S. Constitution granted African American men the right to vote by declaring that the "right of citizens of the United States to vote shall not be denied or abridged by the United States or by any state on account of race, color, or previous condition of servitude."
