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    Macroeconomics Study Set 10
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    Exam 2: The Measurement and Structure of the National Economy
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    If the Expected Inflation Rate Was 2
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If the Expected Inflation Rate Was 2

Question 10

Question 10

Multiple Choice

If the expected inflation rate was 2.5%,the expected real interest rate was 4.0%,and the actual inflation rate turned out to be 3.2%,then the real interest rate equals


A) 1) 7%.
B) 3) 2%.
C) 3) 3%.
D) 4) 7%.

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