Match each phrase to the type of interest rate it describes.

the stated interest rate on

an account

considers inflation

does not consider inflation

provides a sense of

purchasing power

Nominal Interest Rate

Real Interest Rate

Question

Mathematics

Damari Mcintosh

18 October, 19:18

Match each phrase to the type of interest rate it describes.

the stated interest rate on

an account

considers inflation

does not consider inflation

provides a sense of

purchasing power

Nominal Interest Rate

Real Interest Rate

+4

Answers (1)

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Santos · Answer 1

Nominal Interest Rate: Does not consider inflation provides a sense of purchasing power

Real Interest Rate: It describes the stated interest rate on an account and also considers inflation

Step-by-step explanation:

Real interest rate can be defined as the Nominal interest rate minus the inflation rate.

Nominal Interest Rate is the interest rate without taking into account the inflation

Match each phrase to the type of interest rate it describes.the stated interest rate onan accountconsiders inflationdoes not consider inflationprovides a sense ofpurchasing powerNominal Interest RateReal Interest Rate

Match each phrase to the type of interest rate it describes.

the stated interest rate on

an account

considers inflation

does not consider inflation

provides a sense of

purchasing power

Nominal Interest Rate

Real Interest Rate