The Consumer Price Index Was 225 in 2006 and 234

question 84

Multiple Choice

The consumer price index was 225 in 2006 and 234 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?

• A)2.5 percent
• B)4.0 percent
• C)6.76 percent
• D)10.5 percent