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Which type of interest rate includes the impact of inflation?

nominal interest rate
compounding interest rate
real interest rate
simple interest rate

Sagot :

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Answer:

A nominal interest rate contains two parts: a real interest rate and an inflation premium. As an economy grows with inflation, the purchasing power of each dollar declines over time.

Explanation:

Answer:

Real interest rate

Explanation:

This is the answer on the test

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