Q.

The relationship between the money rate of return, m, the real rate of return, h, and the inflation rate, i, is expressed in which of the following formulae?

A. h = 1 + i / 1 + m
B. m = h + i
C. (1 + m) = (1 + h)i
D. 1 + h = (1 + m) / (1 + i)
Answer» D. 1 + h = (1 + m) / (1 + i)
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