Multiple Choice
If the nominal interest rate is 8 percent and expected inflation is 3.5 percent, then what is the real interest rate?
A) 11.5 percent
B) 7.5 percent
C) 4.5 percent
D) 2.5 percent
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q7: In the fourteenth century,the Western African Emperor
Q9: When inflation rises,people will desire to hold<br>A)less
Q36: U.S.tax laws allow taxpayers,in computing the amount
Q106: For a given real interest rate, an
Q177: If the Fed increases the money supply,
Q209: Monetary neutrality means that a change in
Q229: Interest rates adjusted for the effects of
Q237: Over time both real GDP and the
Q279: You put money into an account that
Q283: Figure 17-3. On the graph, MS represents