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The Current Real Interest Rate Is 8 Percent

Question 53

Multiple Choice

The current real interest rate is 8 percent. It follows the nominal interest rate is __________ percent if the expected inflation rate is __________ percent.


A) 8; 6
B) 10; 2
C) -2; 4
D) 6; 2
E) There is not enough information to answer the question.

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