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    Economics Study Set 11
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    Exam 29: Business Cycles, Unemployment, and Inflation
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    You Are Given the Following Information About the Economy: the Nominal
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You Are Given the Following Information About the Economy: the Nominal

Question 276

Question 276

Multiple Choice

You are given the following information about the economy: the nominal interest rate = 8 percent, and the real rate of interest = 6 percent.The inflation premium is


A) 2 percent.
B) 6 percent.
C) 8 percent.
D) 14 percent.

Correct Answer:

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