Solved

If the Annual Real Rate of Interest Is 2

Question 55

Multiple Choice

If the annual real rate of interest is 2.5%, and the expected inflation rate is 3.4%, the nominal rate of interest would be approximately


A) 5.9%.
B) 0.9%.
C) -0.9%.
D) 7%.
E) None of the options are correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions