Multiple Choice
If a bank posts a nominal interest rate of 4 percent,and inflation is expected to be 3 percent,then
A) the expected real interest rate is 7 percent.
B) the expected real interest rate is 1 percent.
C) the expected real interest rate is 1.33 percent.
D) the expected real interest rate is 12 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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