Multiple Choice
What would happen to the real interest rate if originally the nominal interest rate was 14% and the inflation rate was 10%, then the nominal interest rate fell to 7% as the inflation rate fell to 4%? It would go from:
A) 24% to 11%.
B) 11% to 24%.
C) 4% to 3%.
D) 3% to 4%.
Correct Answer:
Verified
Correct Answer:
Verified
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