What is the real interest rate if the nominal interest rate is 1 when the rate of inflation is 2

Real interest rate = -1%

Step-by-step explanation:

Real interest rate=Nominal interest rate - inflation rate

From the above,

Nominal interest rate=1%

Inflation rate=2%

Real interest rate=Nominal interest rate - inflation rate

=1% - 2%

= -1%

Real interest rate = -1%

Real interest rate shows you what it really costs borrowers to pay back their loans.

if the real interest rate is greater than zero, the amount you pay back is worth more in real terms than the money you borrowed.

if the real interest rate is below zero as in the above case, the amount you will pay back is less worth in real terms than the money you borrowed.

ratios represent a pattern or relationship that can be scaled.

equivalent ratios are pairs of ratios that represent the same relationship between quantities, and can be generated by multiplying or dividing both quantities in the ratio by the same factor.

in this lesson, students will use double number lines and ratio reasoning to solve ratio problems. by partitioning double number lines into proportionate intervals, students will build an understanding of equivalent ratio relationships as those that are generated by multiplying or dividing two related quantities by the same number. this lesson will build upon students' prior understanding of multiplicative comparisons, number line reasoning and equivalent fractions (while highlighting the difference between equivalent fractions and equivalent ratios); and will build toward future work in this unit on building ratio tables, and work in future grades in proportionality, scaling, and expressing and graphing linear functions.

step-by-step explanation:

ratios represent a pattern or relationship that can be scaled.

equivalent ratios are pairs of ratios that represent the same relationship between quantities, and can be generated by multiplying or dividing both quantities in the ratio by the same factor.

in this lesson, students will use double number lines and ratio reasoning to solve ratio problems. by partitioning double number lines into proportionate intervals, students will build an understanding of equivalent ratio relationships as those that are generated by multiplying or dividing two related quantities by the same number. this lesson will build upon students' prior understanding of multiplicative comparisons, number line reasoning and equivalent fractions (while highlighting the difference between equivalent fractions and equivalent ratios); and will build toward future work in this unit on building ratio tables, and work in future grades in proportionality, scaling, and expressing and graphing linear functions.