The Real Interest Rate Is 2 Percent Per Year

Multiple Choice

The real interest rate is 2 percent per year.If, at the same time, the interest rate on money is 12 percent per year, then:

A) deflation is affecting this economy.
B) the inflation rate is 6 percent per year.
C) the inflation rate is 10 percent per year.
D) the inflation rate is 2 percent per year.
E) the inflation rate is 12 percent per year.