Question

The real interest rate earned is the Group of answer choices same as the nominal interest rate when inflation is moderate cost of borrowing in current consumer prices cost of borrowing in current producer prices cost of borrowing adjust for the rate of change in the price level nominal interest rate adjusted for the growth rate of the economy

Answer 1

cost of borrowing adjust for the rate of change in the price level

Step-by-step explanation:

The real interest rate earned is the rate where the borrowing cost would be adjusted for the change in the rate in the level of the price as the real interest rate represent the interest rate that should be adjusted to the inflation

Hence, according to the given options, second option is correct

hence, the same would be relevant