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
Preamble is apart of the Indian Constitution. Grievance was a document written by the Stamp Act Congress and passed on October 14, 1765. Declaration is an statement or an announcement. Like the Declaration of Independence, it was a statement about rights and beliefs. Button Gwinnett, Lyam Hall and Georgia Walton, were the three Georgians who signed the Declaration of Independence.
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Explanation:
Just as animals are used as models to study the heart or lungs of human beings, so they are used as models to gain insight into the human brain and nervous system. But the brain is much more complex and subtle than any other organ.
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It allows a stronger government by not giving too much power to one specific branch of government, federal being state.
Answer:
im pretty sure the answer is C
Explanation:
