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    Exam 4: Introduction to Macroeconomics
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    Prices Have Been Rising 6 Percent a Year for Twenty
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Prices Have Been Rising 6 Percent a Year for Twenty

Question 101

Question 101

Multiple Choice

Prices have been rising 6 percent a year for twenty years.The nominal rate of interest is 12 percent.The real rate of interest is


A) 4 percent.
B) 6 percent.
C) 10 percent.
D) 12 percent.

Correct Answer:

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