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Which of the following statements regarding the "Nominal and Real Interest Rate" is TRUE? ...

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Question

Finance

Which of the following statements regarding the "Nominal and Real Interest Rate" is TRUE?

A.

Real interest rate does not account for inflation.

It is implied (meaning it is not observed directly, it has to be computed).
B.

Nominal interest rate accounts for inflation.

It is implied (meaning it is not observed directly, it has to be computed).
C.

Real interest rate accounts for inflation.

It is implied (meaning it is not observed directly, it has to be computed).
D.

Nominal interest rate is more important to investors than Real interest rate

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