The difference between the nominal interest rate and the real interest rate is
A. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate plus the inflation rate.
B. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.
C. the real interest rate is the stated interest rate whereas the nominal interest rate is the real interest rate minus the inflation rate.
D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate divided by the inflation rate.
Answer: B. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.