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23 July, 15:57

The real rate of interest:

a. does not account for the effects of inflation.

c. is inversely related to the national rate of interest

b. does account for the effects of inflation

d. is both a and

b.

+2
Answers (1)
  1. 23 July, 19:36
    0
    The real rate of interest does account for inflation: its the amount of money than an investor will receive, adjusted for inflation: B is correct (And D isn't, as B os correct, but not A).
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