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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
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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

User Harsh Mishra
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2 Answers

5 votes

Answer:

Real interest rate

Step-by-step explanation:

This is the answer on the test

User Ullstrm
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3 votes

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.

Step-by-step explanation:

User Ari Braginsky
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