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Which of the Following Equations Is Correct

Question 35

Multiple Choice

Which of the following equations is correct?


A) Realized real interest rate = Nominal interest rate ‒ Realized nominal interest rate.
B) Realized real interest rate = Nominal interest rate + Realized inflation rate.
C) Realized real interest rate = Nominal interest rate ‒ Realized inflation rate.
D) Realized real interest rate = Realized inflation rate.

Correct Answer:

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