. The rate of ______ is the ______ paid for using someone else’s ______, which is a _____ to consumers for earlier availability of durable goods such as cars, and a ______ to suppliers for capital investments nominal interest; money; cost; price; costnominal interest; price; money; cost; costreal interest; price; money; cost; costreal interest; money; cost; price; cost

Answered: . The rate of ______ is the ______…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Related questions

Question

. The rate of ______ is the ______ paid for using someone else’s ______, which is a _____ to consumers for earlier availability of durable goods such as cars, and a ______ to suppliers for capital investments

nominal interest; money; cost; price; cost
nominal interest; price; money; cost; cost
real interest; price; money; cost; cost
real interest; money; cost; price; cost

Expert Solution

Step 1

Nominal interest rate is the rate of interest borrowers have to pay on amount borrowed from someonelse. Real interest rate is the rate of interest adjusted for inflation. It is the cost of borrowing.