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    Modern Principles of Economics
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    Exam 12: Inflation and the Quantity Theory of Money
  5. Question
    If the Nominal Interest Rate Is 8% While the Inflation
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If the Nominal Interest Rate Is 8% While the Inflation

Question 58

Question 58

Multiple Choice

If the nominal interest rate is 8% while the inflation rate is 10%, then the real rate of return for lenders is:


A) 18%.
B) 10%.
C) 2%.
D) -2%.

Correct Answer:

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