Suppose That the Real Interest Rate Is 2

Multiple Choice

Suppose that the real interest rate is 2.1%, and the nominal interest rate is 5.4%. The inflation rate is _____.

A) 7.5%.
B) 7.5%
C) 3.3%.
D) 3.3%
E) −3.3%.
F) −3.3%
G) 2.1%
H) 2.1%.