Essentials of Economics 7th Edition by Gregory Mankiw

Exercise 18

You deposit $2,000 in a savings account, and a year later you have $2,100. Meanwhile, the consumer price index rises from 200 to 204. In this case, the nominal interest rate is _________ percent, and the real interest rate is _________ percent.
A) 1, 5
B) 3, 5
C) 5, 1
D) 5, 3