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Homework answers / question archive / Which of the following statements is true?     a) Nominal interest rate = real interest rate - expected inflation rate

Which of the following statements is true?     a) Nominal interest rate = real interest rate - expected inflation rate

Economics

Which of the following statements is true?

 

 

a) Nominal interest rate = real interest rate - expected inflation rate.

 

b) Nominal interest rate = real interest rate + expected inflation rate.

 

c) Real interest rate = nominal interest rate + expected inflation rate.

 

d) Expected inflation rate = nominal interest rate + real interest rate.

 

e) Expected inflation rate = real interest rate - nominal interest rate.

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