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    If the Annual Real Rate of Interest Is 6%, and the Expected
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If the Annual Real Rate of Interest Is 6%, and the Expected

Question 38

Question 38

Multiple Choice

If the annual real rate of interest is 6%, and the expected inflation rate is 2%, the nominal rate of interest would be approximately


A) 1%.
B) 8%.
C) 20%.
D) 15%.

Correct Answer:

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