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    The Real Rate of Interest Is 3 Percent and Inflation
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The Real Rate of Interest Is 3 Percent and Inflation

Question 72

Question 72

Multiple Choice

The real rate of interest is 3 percent and inflation is 4 percent. What is the nominal rate of interest?


A) 3.00 percent
B) 1.00 percent
C) 7.12 percent
D) -1.00 percent

Correct Answer:

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