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    Exam 8: Interest Rates
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    If the Nominal Interest Rate Is 8% and the Risk-Free
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If the Nominal Interest Rate Is 8% and the Risk-Free

Question 61

Question 61

Multiple Choice

If the nominal interest rate is 8% and the risk-free rate is 3%, the expected inflation rate must be:


A) 3%
B) 5%
C) 11%
D) cannot be determined without additional information

Correct Answer:

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