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    The Real Rate of Interest Is 2% and the Anticipated
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The Real Rate of Interest Is 2% and the Anticipated

Question 375

Question 375

Multiple Choice

The real rate of interest is 2% and the anticipated rate of inflation is 2%. What is the nominal rate of interest?


A) 4%
B) 0%
C) -2%
D) 2%

Correct Answer:

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