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    Macroeconomics Study Set 49
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    Exam 25: Measuring and Describing the Aggregate Economy
  5. Question
    If the Nominal Interest Rate Is 2% and Inflation Is
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If the Nominal Interest Rate Is 2% and Inflation Is

Question 54

Question 54

Multiple Choice

If the nominal interest rate is 2% and inflation is 3%, the real interest rate is:


A) -1%.
B) 0%
C) 1%.
D) 2%.

Correct Answer:

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