The real return is the difference between the nominal and actual rate of inflation. Therefore, the real return revived by Luigi will be 6%.
<u>Given</u><u> </u><u>the</u><u> </u><u>Parameters</u><u> </u><u>:</u>
- <em>Nominal rate = 7% </em>
- <em>Actual rate of inflation = 1%</em>
<em>Real return = Nominal rate - Actual rate of return </em>
Real Return = 7% - 1% = 6%
Therefore, the real return on Luigi's money would be 6%
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Health experts cautioned yesterday that some endurance athletes drink too much water during exercise and are at risk of deadly "water intoxication." Marathon runners, triathletes and cyclists are familiar with dehydration, caused by not drinking enough.
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