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    Exam 25: Measuring and Describing the Aggregate Economy
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    If the Nominal Interest Rate Is 5 Percent and Inflation
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If the Nominal Interest Rate Is 5 Percent and Inflation

Question 222

Question 222

Multiple Choice

If the nominal interest rate is 5 percent and inflation is 3 percent, the real interest rate is:


A) 0 percent.
B) 2 percent.
C) 8 percent.
D) 15 percent.

Correct Answer:

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