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:

Verified
Correct Answer:
Verified
Related Questions
Q14: The supply of money increases when<br>A)the price
Q178: Based on the quantity equation,if M =
Q179: According to the quantity equation,the price level
Q180: When the money market is drawn with
Q182: According to monetary neutrality and the Fisher
Q184: Suppose the money supply tripled,but at the
Q185: Your boss gives you an increase in
Q185: Figure 30-3.On the graph,MS represents the money
Q186: When the money market is drawn with
Q188: Your spouse complains that her 6% raise