Multiple Choice
If the nominal interest rate on a one-year loan was 7%,the actual inflation rate over the year was 3% and the expected inflation rate over the year was 2.5%,then the expected real interest rate equals
A) 4) 5%.
B) 4) 0%.
C) 3) 75%.
D) 3) 5%.
Correct Answer:
Verified
Correct Answer:
Verified
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