If the Price Level Increases by 80% in One Year

question 59

Multiple Choice

If the price level increases by 80% in one year, then for the real rate of interest to be 10%, the nominal rate of interest would have to be

• A)98%.
• B)70%.
• C)18%.
• D)88%.
• E)72%.

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Definitions:

Introspection

The examination or observation of one's own mental and emotional processes, often used as a method of personal reflection.

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