Table 24-12

Multiple Choice

Table 24-12. Will's expenditures on food for three consecutive years, along with other values, are presented in the table below.
-Refer to Table 24-12. Suppose Will's 2009 food expenditures in 2011 dollars amounted to $5,670. Suppose also that the real interest rate in 2011 was 3 percent. Then, in 2011,

A) the inflation rate was 8 percent and the nominal interest rate was 5 percent.
B) the inflation rate was 9 percent and the nominal interest rate was 6 percent.
C) the inflation rate was 8 percent and the nominal interest rate was 11 percent.
D) the inflation rate was 9 percent and the nominal interest rate was 12 percent.