We can write the true relationship between the nominal interest rate and the real rate and expected inflation as:
A. (1 + r) =(1+r)(1+h )
B. r=(1+r) (1 + h) - 1
C. r = (1 + r)(1 + h) - 1
D. r=(1+r )* (1 + h) + 1
A. (1 + r) =(1+r)(1+h )
B. r=(1+r) (1 + h) - 1
C. r = (1 + r)(1 + h) - 1
D. r=(1+r )* (1 + h) + 1