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    International Economics Study Set 3
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    Exam 14: Exchange Rates in the Short Run
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    If the Nominal Interest Rate Is 0
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If the Nominal Interest Rate Is 0

Question 3

Question 3

Multiple Choice

If the nominal interest rate is 0.6 percent and the rate of inflation is 2.9 percent in a given year,then what is the corresponding real rate of return?


A) 3.5 percent
B) 2.3 percent
C) -3.5 percent
D) None of the above.

Correct Answer:

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