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    Exam 17: Money Growth and Inflation
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    If the Nominal Interest Rate Is 5 Percent and the Inflation
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If the Nominal Interest Rate Is 5 Percent and the Inflation

Question 363

Question 363

Multiple Choice

If the nominal interest rate is 5 percent and the inflation rate is 2 percent, then what is the real interest rate?


A) 10 percent
B) 7 percent
C) 3 percent
D) 2.5 percent

Correct Answer:

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