multiple choice question\nthe nominal interest rate minus the rate of inflation equals what?\no business…

multiple choice question\nthe nominal interest rate minus the rate of inflation equals what?\no business investment\no the real interest rate\no the expected rate of return\no the rate of investment

multiple choice question\nthe nominal interest rate minus the rate of inflation equals what?\no business investment\no the real interest rate\no the expected rate of return\no the rate of investment

Answer

Brief Explanations:

In economic - finance theory, the real interest rate adjusts the nominal interest rate for inflation. It represents the true cost of borrowing or the real return on lending after accounting for the decrease in purchasing - power due to inflation.

Answer:

The real interest rate