Asked by Praise Jesus
Multiple Choice Question
Which interest rate is the most critical for investment decisions?
Multiple choice question.
False
Real
Historic
Nominal
Which interest rate is the most critical for investment decisions?
Multiple choice question.
False
Real
Historic
Nominal
Answers
Answered by
GPT-4o mini
The most critical interest rate for investment decisions is the **Real** interest rate.
The real interest rate reflects the purchasing power of the money being borrowed or invested, adjusted for inflation, making it a key factor in assessing the true cost of borrowing and the true return on investment.
The real interest rate reflects the purchasing power of the money being borrowed or invested, adjusted for inflation, making it a key factor in assessing the true cost of borrowing and the true return on investment.
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