The true cost of borrowing and lending is best measured by

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Social Studies

Andreas Fuentes

20 July, 23:52

The true cost of borrowing and lending is best measured by

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Alina Chung · Answer 1

The true cost of borrowing and lending is best measured by : the real interest rate

The real interest rate reflect the true cost because it counted after calculating the rate of inflation into equation. The true cost could be find out by deducting the nominal interest rate with the inflation rate