Multiple Choice
You open an investment account that earns a nominal interest rate of 4.2% a year. The current consumer price index is 108. In one year, the consumer price index is expected to go to 112. What is your expected real rate of return?
A) -0.5%
B) 4.2%
C) 0.5%
D) 3.7%
Correct Answer:
Verified
Correct Answer:
Verified
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