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    Macroeconomics Study Set 37
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    Exam 16: Inflation
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    If the Real Rate of Return Is 2 Percent, and the Inflation
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If the Real Rate of Return Is 2 Percent, and the Inflation

Question 75

Question 75

Multiple Choice

If the real rate of return is 2 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:


A) 4 percent.
B) 2 percent.
C) −2 percent.
D) −4 percent.

Correct Answer:

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