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    Macroeconomics Principles Applications
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    Exam 12: Investment and Financial Markets
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    If the Real Interest Rate Is 4 Percent and the Nominal
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If the Real Interest Rate Is 4 Percent and the Nominal

Question 33

Question 33

Multiple Choice

If the real interest rate is 4 percent and the nominal interest rate is 7 percent, this implies an expected inflation rate of


A) 3 percent.
B) 4 percent.
C) 5.5 percent.
D) 11 percent.

Correct Answer:

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