Question
Recording indication
Instructor videos
Deborah Tobin
Presentation area
QUICK QUIZ
The real interest rate of a savings account equals the nominal rate
minus inflation
True False
Instructor videos
Deborah Tobin
Presentation area
QUICK QUIZ
The real interest rate of a savings account equals the nominal rate
minus inflation
True False
Answers
GPT-4o mini
True.
The real interest rate is indeed calculated by taking the nominal interest rate and subtracting the inflation rate. This reflects the actual purchasing power of the interest earned.
The real interest rate is indeed calculated by taking the nominal interest rate and subtracting the inflation rate. This reflects the actual purchasing power of the interest earned.