Question: What is the difference between a Real interest rate and a Nominal Interest rate. A Nominal interest rate takes inflation into account, where as a

What is the difference between a Real interest rate and a Nominal Interest rate.

A Nominal interest rate takes inflation into account, where as a Real interest rate does not.

A Real interest rate takes into account, the effects of interest rate parities among various countries.

Some countries use Real interest rates while others use Nominal. There is no difference.
None of the above

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