The Current Real Interest Rate Is 8 Percent

question 53

Multiple Choice

The current real interest rate is 8 percent. It follows the nominal interest rate is __________ percent if the expected inflation rate is __________ percent.

• A)8; 6
• B)10; 2
• C)-2; 4
• D)6; 2
• E)There is not enough information to answer the question.

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