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    Principles of Macroeconomics Study Set 8
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    Exam 13: Saving Investment and the Financial System: The Market for Loanable Funds
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    If the Nominal Interest Rate Is 2
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If the Nominal Interest Rate Is 2

Question 64

Question 64

Multiple Choice

If the nominal interest rate is 2.5 percent and the inflation rate is 2 percent,what is the real interest rate?


A) .5 percent
B) 1.25 percent
C) 4.5 percent
D) None of the above is correct.

Correct Answer:

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