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    Principles of Economics Study Set 1
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    Exam 18: Measuring the Price Level and Inflation
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    If the Nominal Interest Rate Is 8 Percent and the Real
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If the Nominal Interest Rate Is 8 Percent and the Real

Question 7

Question 7

Multiple Choice

If the nominal interest rate is 8 percent and the real interest rate is 3 percent, then the inflation rate equals:


A) 3 percent.
B) 5 percent.
C) 8 percent.
D) 11 percent.

Correct Answer:

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