The real rate of interest:
a. does not account for the effects of inflation.
c. is inversely related to the national rate of interest
b. does account for the effects of inflation
d. is both a and
b.

The correct answer is C.

The real rate of interest is defined as the amount that a lender or investor receives as a retribution after adjusting the nominal rate to remove the effect that inflation would cause on those earnings.

The following formula, known as the Fisher Equation, needs to be applied for the abovementioned adjustment. It establishes the relationship between real and nominal interests rates, in terms of inflation.

r = i - π

where,

r= real interest rate

i= norminal interest rate

π = inflation rate

the 4th option is the answer

the aksumite empire was an ancient kingdom located in what is now northern ethiopia from the period of 100 ad to 940 ad. its capital was the city of aksum. the kingdom established itself as one of the 4 great powers at its time, along with persia, rome, and china.

the kingdom was rich in goods like gold, iron, and salt. it established strong commercial ties with the regions governed by rome, egypt, and persia (arabia). aksum was a key location in this commercial network. trade was also facilitated with the introduction of the aksumite currency.