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    Principles of Macroeconomics Study Set 8
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    Exam 17: Money Growth and Inflation: The Classical Theory of Inflation
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    The Nominal Interest Rate Is 5 Percent and the Inflation
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The Nominal Interest Rate Is 5 Percent and the Inflation

Question 183

Question 183

Multiple Choice

The nominal interest rate is 5 percent and the inflation rate is 2 percent.What is the real interest rate?


A) 7 percent
B) 2.5 percent
C) 10 percent
D) 3 percent

Correct Answer:

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