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  3. Study Set
    Macroeconomics Study Set 43
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    Exam 9: B: Business Cycles, Unemployment, and Inflation
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    If the Nominal Interest Rate Is 12 Percent and the Real
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If the Nominal Interest Rate Is 12 Percent and the Real

Question 151

Question 151

Multiple Choice

If the nominal interest rate is 12 percent and the real interest rate is 8 percent, then the inflation premium is:


A) 8 percent.
B) 12 percent.
C) 4 percent.
D) 20 percent.

Correct Answer:

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