Multiple Choice
The inflation rate has been 4 percent for twenty years and the nominal interest rate has been 8 percent during this same time period.Unexpectedly,the actual inflation rate the next year is 8 percent.The real rate of interest this last year is
A) zero.
B) 2 percent.
C) 4 percent.
D) 6 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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