Multiple Choice
If the nominal interest rate is 8 percent and expected inflation is 2.5 percent,then what is the real interest rate?
A) 10.5 percent
B) 20 percent
C) 5.5 percent
D) 3.2 percent
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q25: Changes in nominal variables are determined mostly
Q51: In the long run,money demand and money
Q52: The nominal interest rate is 6 percent
Q53: The source of hyperinflations is primarily<br>A)lower output
Q54: If real output in an economy is
Q56: Suppose the United States unexpectedly decided to
Q57: Suppose that velocity rises while the money
Q58: When the money market is drawn with
Q59: Suppose the money supply grew at an
Q60: If a country experienced deflation,then<br>A)the nominal interest