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    The Economy Today
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    Exam 7: Inflation
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    If the Nominal Interest Rate Is 6 Percent and the Anticipated
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If the Nominal Interest Rate Is 6 Percent and the Anticipated

Question 25

Question 25

Multiple Choice

If the nominal interest rate is 6 percent and the anticipated rate of inflation is 6 percent,the real interest rate is


A) 6 percent.
B) 12 percent.
C) 3 percent.
D) 0 percent.

Correct Answer:

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