The Consumer Price Index Was 225 in 2006 and 236

question 355

Multiple Choice

The consumer price index was 225 in 2006 and 236 in 2007.The nominal interest rate during this period was 6.5 percent.What was the real interest rate during this period?

• A) 1.6 percent
• B) 4.9 percent
• C) 6.82 percent
• D) 11.4 percent

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Definitions:

Optimal Solution

The most efficient and effective answer to a problem, maximizing or minimizing the desired variables within constraints.