Which of the Following Approximately Describes the Relationship Between the Nominal

Multiple Choice

Which of the following approximately describes the relationship between the nominal and real interest rate?

A) r $\approx$ R - i
B) R $\approx$ r - i
C) R $\approx$ r + $\frac{i}{2}$
D) r $\approx$ R + i
E) r - R $\approx$ i