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:
False
Explination:
this statement would be true providing that both parents were at home caring for their children for equal amounts of time because that would limit gender-stereotyped beliefs as both parents (not just the mother) commits to parenting.
Features of the modern labor system resulting from union action include no work on weekends, 8 hour workday, enforced work safety regulations, paid vacation/sick days, national holidays off, overtime pay, and the minimum wage.
He thought he could free slaves in the rebel states becuz he thought that if he frees slaves than there will be more men in his troops he could use those free slaves to increase the men.and he didn't free slaves in the union part becuz people are already getting mad at him. the reason for this is that all the free slaves are going to take the white peoples jobs in the union.and Abraham didn't want the unions to be more mad at him and eventually go against him
They still believed that the lands claim by texas east of the el paso river belongs to mexico and not rhe united state