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    Principles of Economics Study Set 8
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    Exam 26: Saving, Investment, and the Financial System
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    If the Nominal Interest Rate Is 8 Percent and the Inflation
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If the Nominal Interest Rate Is 8 Percent and the Inflation

Question 216

Question 216

Multiple Choice

If the nominal interest rate is 8 percent and the inflation rate is 3 percent, then the real interest rate is


A) -5 percent.
B) 11 percent.
C) 5 percent.
D) 3 percent.

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