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? | Faculties

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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)

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✅ Correct Answer: (D) 1 + h = (1 + m) / (1 + i)

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