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If the Nominal Interest Rate Is 5 Percent and the Expected

Question 23

Multiple Choice

If the nominal interest rate is 5 percent and the expected inflation rate is 2.1 percent,the real interest rate is

A) 1.9 percent.
B) 7.1 percent.
C) 4.1 percent.
D) 2.9 percent.
E) 0.29 percent.

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