Multiple Choice
If the nominal interest rate is 6 percent and the inflation rate is 4 percent,
A) the real interest rate is 10 percent
B) the real interest rate is 2 percent
C) the real interest rate is -2 percent
D) the real interest rate is -10 percent
E) there is insufficient information to determine the real rate of interest
Correct Answer:
Verified
Correct Answer:
Verified
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