Multiple Choice
You purchase a certificate of deposit and expect an inflation rate of 1.25% over the next year. Your nominal rate of interest is 2.1%. Over the next year, the actual inflation rate turns out to be 0.95%. What is your actual real rate of return?
A) 0.95%
B) 2.1%
C) 1.15%
D) -0.3%
Correct Answer:
Verified
Correct Answer:
Verified
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