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
Prior-hypothesis bias is the tendency for people with strong prior beliefs, when confronted with a choice, to make their decisions based on their beliefs even if their beliefs are false.
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Explanation:</u></h3>
Decisions are important in day to day life. It is very essential for a person to think about all the alternatives and the consequences of each of them before making right decisions. Decisions that we take in certain situations has a great impact on both the decision maker and the people surrounding that person.
In some situations, some people make decisions based on the beliefs that are prior to certain relationship between some variables. They even know that those beliefs are wrong sometimes even they have some evidence for it. This tendency of the people refers to prior hypothesis bias.
Answer:
? this doesn't make sense.
Explanation:
Answer:
C) informed and active membership in a political community
Explanation:
There's much more to being a citizen than just about paying taxes, and reaping benefits.
And being a citizen also doesn't mean you get to control every aspect of the government.
Citizenship doesn't just exist in the United States, you can be a citizen of other countries. Not everyone who lives in the United States is a citizen of the United States.
Therefore, the most appropriate answer choice is C.
Someone like this should consider career or technical education.
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