Nominal Interest Rate = Option 1: Real Interest Rate x Inflation Rate Option 2: Real Interest Rate - Inflation rate Option 3: Real Interest Rate / Inflation rate Option 4: Real Interest Rate + Inflation rate

The answer is 'Real Interest Rate + Inflation rate'. View full solution:

CUET Economics - Nominal Interest Rate = | PYQs + Solutions

CUET Economics

Macro

Easy

Real Interest Rate $\times$ Inflation Rate

Real Interest Rate $-$ Inflation rate

Real Interest Rate $/$ Inflation rate

Real Interest Rate $+$ Inflation rate

✅ Correct Option: 4

Related questions:

28 May Shift 1

This is the index of prices of a given basket of commodities which are bought by the representative customer. Two years under consideration are kept – one is the base year, the other is the current year. First, the cost of purchase of a given basket of commodities in the base year is calculated. Then the cost of purchase of the same basket in the current year is calculated. Then we express the latter as a percentage of the former.

This index is called :

Customer Index Pricing
Consumer Index Pricing
Consumer Price Index
Customer Price Index

2 June Shift 1

Identify which of the following statements is incorrect with reference to an economy?

26 May Shift 2

The value of the nominal GNP of an economy was Rs 5000 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 6000 crores. What is the value of the GNP deflator of the year.

CUET Economics PYQs

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