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:A. he held this would allow the population to thin itself out naturally
Explanation:
Thomas Malthus's theory was concerned with the rate of population growth. He the established the Malthusian theory of population growth which states that population growth occurs exponentially, whilst the production of food increases linearly. Exponentially means it increases faster and faster especially as birth rates also increases. Linear increase of food production means it goes through stages and can only increase at a given point.
As a resulf of this , it likely that population will grow up to a point where the available resources are less than the population itself , it will out grow the resources.
So he looked at want can be done to reduce this potential effect of poulation growth and he determined types of checks.
Preventive checks things are things that people can do voluntarily such as delaying getting married in which he supported moral restraint as a religious person himself.
He also determined positive checks which may help shorten the lifespan such as disease,famine ,warfare and poor living. So to him these catastrophic events may assist in reducing the increase of population by shortening the life span, naturally decreasing the population.
i think that the answer is A or C. that might help you a little bit
FORMATIVE I know because there is no suck thing as FORMATIVE