Multiple Choice
Suppose the nominal interest rate is 10 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 4 percent. At the end of the year, you have earned a real rate of interest of:
A) 4 percent.
B) 6 percent.
C) 10 percent.
D) 14 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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