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#tvm
Question
A decrease in expected inflation rate would decrease the [...]
nominal risk-free rate of return

but would have no effect on the real risk-free rate of return.

Tags
#tvm
Question
A decrease in expected inflation rate would decrease the [...]
?

Tags
#tvm
Question
A decrease in expected inflation rate would decrease the [...]
nominal risk-free rate of return

but would have no effect on the real risk-free rate of return.
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The nominal risk-free rate of return includes both the real risk-free rate of return and the expected rate of inflation. A decrease in expected inflation rate would decrease the nominal risk-free rate of return, but would have no effect on the real risk-free rate of return.

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