If the Nominal Interest Rate Is 14 Percent and the Real

question 80

Multiple Choice

If the nominal interest rate is 14 percent and the real interest rate is 6 percent,then the expected rate of inflation is

• A) 20 percent.
• B) 6 percent.
• C) 8 percent.
• D) -8 percent.
• E) impossible to determine from the data given.

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