Solved

If the Inflation Rate Is 5 Percent and the Real

Question 80

Multiple Choice

If the inflation rate is 5 percent and the real interest rate is 2.5 percent, then the nominal interest rate is

A) -2.5 percent.
B) 2 percent.
C) 7.5 percent.
D) 2.5 percent.
E) 10 percent.

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