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An Approximation to the "Real" Interest Rate Can Be Calculated

Question 12

Multiple Choice

An approximation to the "real" interest rate can be calculated by


A) subtracting the nominal interest rate from the inflation rate.
B) subtracting the price level from the nominal interest rate.
C) dividing the nominal interest rate by the inflation rate.
D) subtracting the inflation rate from the nominal interest rate.

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