Which of the Following Combinations of Real Interest Rates and Inflation

Multiple Choice

Which of the following combinations of real interest rates and inflation implies a nominal interest rate of 6 percent?

A) a real interest rate of 3 percent and an inflation rate of 2 percent.
B) a real interest rate of 7 percent and an inflation rate of 1 percent.
C) a real interest rate of 5 percent and an inflation rate of 1 percent.
D) a real interest rate of 6 percent and an inflation rate of 1 percent.