If the Current Inflation Rate Is 5%,then the Nominal Rate

question 86

Multiple Choice

If the current inflation rate is 5%,then the nominal rate necessary for you to earn an 8% real interest rate on your investment is closest to:

• A)13.0%
• B)13.4%
• C)4.9%
• D)3.0%
• E)8.0%

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