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    Macroeconomics Principles Applications
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    Exam 12: Investment and Financial Markets
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    If the Nominal Interest Rate Is 2 Percent and the Inflation
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If the Nominal Interest Rate Is 2 Percent and the Inflation

Question 37

Question 37

Multiple Choice

If the nominal interest rate is 2 percent and the inflation rate is 4 percent, then the real rate of interest is


A) -2 percent.
B) 2 percent.
C) 3 percent.
D) 6 percent.

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