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If the Nominal Interest Rate Is 4 Percent and the Anticipated

Question 316

Multiple Choice

If the nominal interest rate is 4 percent and the anticipated inflation rate is 6 percent, then


A) the real interest rate is -10 percent.
B) the real interest rate is 10 percent.
C) the real interest rate is -2 percent.
D) the real interest rate is 2 percent.

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