The possibility that deflation could affect the rate of return on an investment is referred to as interest rate risk.

Name: The possibility that deflation could affect the rate of return on an investment is referred to as interest rate risk.
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Interest rate risk refers to the potential for investment value to change due to fluctuations in interest rates, not deflation. Deflation risk affects purchasing power and can impact investment returns differently.

The Possibility That Deflation Could Affect the Rate of Return