If the Realized Real Interest Rate in an Economy Is

question 155

Multiple Choice

If the realized real interest rate in an economy is 6 percent,the realized inflation rate is 8 percent,and the expected inflation rate is 8 percent,then the nominal interest rate in the economy is ________.

• A) 2 percent
• B) 8 percent
• C) 14 percent
• D) 20 percent

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