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If the Real Interest Rate Is 4

Question 19

Multiple Choice

If the real interest rate is 4.1 percent and the expected inflation rate is 0.7 percent,the nominal interest rate is

A) 3.4 percent.
B) 7.1 percent.
C) 4.8 percent.
D) 5.8 percent.
E) 0.5 percent.

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