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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 4 Percent and the Inflation
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If the Nominal Interest Rate Is 4 Percent and the Inflation

Question 29

Question 29

Multiple Choice

If the nominal interest rate is 4 percent and the inflation rate is 1 percent, then the real rate of interest is


A) 1 percent.
B) 3 percent.
C) 4 percent.
D) 5 percent.

Correct Answer:

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