Westpac Charges an 11 Per Cent Interest Rate on All

Multiple Choice

Westpac charges an 11 per cent interest rate on all new car loans. If the inflation rate is 6 per cent, Westpac receives a real interest rate of

A) 1.83 per cent.
B) 0.54 per cent.
C) 6 per cent.
D) 5 per cent.
E) 11 per cent.