Multiple Choice
If the inflation rate is 2.5 percent and the nominal interest rate is 10 percent, then the real interest rate is
A) 2.5 percent.
B) 7.5 percent.
C) -7.5 percent.
D) -2.5 percent.
E) 12.5 percent.
Correct Answer:

Verified
Correct Answer:
Verified
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