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
Geography influenced Macedonia as it has access to the Aegean Sea was important for trade and transportation.
Option: 3
Explanation:
Macedonia is a country of Europe. The neighboring countries of Macedonia are Serbia, Greece and Bulgaria. The physiography, locational advantage and climate helps in the forming unique position in world's history in case of Macedonia. It has a good water transportation system through which it is well connected with other countries and used this connectivity for its own defense also.
During the time of war this good favorable location helped it to make a fruitful defense against enemy country. It has a good accessibility with Aegean sea which was important for trade and transportation. This locational advantage helped a country in forming its economic base.
