What Is the Real Interest Rate If the Nominal Interest

question 54

Multiple Choice

What is the real interest rate if the nominal interest rate is 9 percent and the expected inflation rate is 4 percent?

• A) 13 percent
• B) −5 percent
• C) 9 percent
• D) −13 percent
• E) 5 percent

---

Definitions:

K-12

Education from kindergarten through 12th grade, encompassing primary and secondary education in the United States.

Educational System

A structured and formal process designed for the teaching and learning of knowledge and skills.

Alimony

Payments made to a spouse or ex-spouse under a separation or divorce agreement, potentially deductible for the payer and taxable for the recipient.

Former Spouse

An individual who was previously married to another individual but is now legally divorced or separated.