Careetha Has Just Taken a Fixed-Rate Loan and Agreed to Pay

Multiple Choice

Careetha has just taken a fixed-rate loan and agreed to pay a nominal interest rate of 6 percent.If the inflation rate during the first year of the loan was 2 percent,her real interest rate that first year was

A) 6 percent
B) 8 percent
C) 4 percent
D) 12 percent
E) impossible to calculate without additional information