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1 year ago

The nominal interest rate minus the expected rate of inflation:________

Social Studies

1 answer:

seropon [69]1 year ago

5 0

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.

Learn more about Nominal Interest rate:
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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

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grigory [225]

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2 years ago

When consumers swipe a card, either debit or credit, to make a transaction with a merchant, the merchant pays an interchange fee

siniylev [52]

Answer:

The three primary stakeholders are the banks, the merchants, and the consumers.

Banks = Against, since this would mean that they will be receiving less

Merchants = For, since they would be paying less

Consumers = Generally unaffected. But I believe they would be more against the proposal because if interchange fees are capped, then the banks will find other ways to retrieve the lost revenues by other means, such as increasing the interest or etc.

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3 years ago

Influence Greek had on Rome

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Are you asking what influence have Greek had on Rome?

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Our president is a man whom people respect.

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