Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The rate of inflation is the difference between the real interest rate and a nominal interest rate.
B) The real interest rate is the product of a nominal interest rate and the expected rate of inflation.
C) The real interest rate is the difference between a nominal interest rate and the expected rate of inflation.
D) The nominal interest rate is the difference between a real interest rate and the expected rate of inflation.