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    Exam 5: Interest Rates
  5. Question
    If the Current Inflation Rate Is 5%,then the Nominal Rate
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If the Current Inflation Rate Is 5%,then the Nominal Rate

Question 56

Question 56

Multiple Choice

If the current inflation rate is 5%,then the nominal rate necessary for you to earn an 8% real interest rate on your investment is closest to:


A) 13.0%.
B) 13.4%.
C) 4.9%.
D) 3.0%.

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