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:Country (people/sq. km)
Afghanistan (38.3)
Bangladesh (952.9)
China (135.7)
Hong Kong (6,436.7)
India (330.7)
Japan (336.0)
Mongolia (1.6)
North Korea (184.2)
South Korea (472.7)
As of 2007, the estimated population of India was over 1.1 billion, while that of Japan was 127 million. Which statement BEST explains a comparison of the population density of the two countries?
Explanation:
<span>carelessness of the novel's characters</span>
<span>Ninety percent of the earth's surface is covered by sedimentary rock. This is the type of rock that is formed by water. Sandstone, limestone, conglomerates, etc. are all present in very large quantities on the surface. When we build a new road through the mountains, cut clefts, and expose rock layers, most often they are sedimentary. This type of rock is so common that it is very likely that most people have never seen any other type of rock. Now the skeptics say that some of these rocks could not be formed in a flood, but they still say that water was necessary, and during the flood, we had plenty of water!</span>