Respuesta :
When economic agents decide to invest in a particular asset, such as a bond, project, or other asset,They are looking for high rates of return.
However, they are more concerned with real returns than they are with nominal returns.To put it another way, they are concerned about the returns after taking into account the rate of inflation.
What distinguishes real interest rates from nominal rates?
A loan's nominal interest rate is what you pay.The nominal interest rate has been adjusted for inflation to produce the real interest rate.
What is the nominal interest rate?
Ostensible financing cost alludes to the loan fee prior to considering expansion.A loan's advertised or stated interest rate—which does not take into account fees or interest compounding—can also be referred to as nominal.
Learn more about nominal interest rate here:
https://brainly.com/question/13324776
#SPJ4
