If the Nominal Interest Rate Is 3% and the Inflation

question 43

Multiple Choice

If the nominal interest rate is 3% and the inflation rate is 6%, the real interest rate is

• A)​2%
• B)​3%
• C)​-3%
• D)​9%

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Definitions:

Bushel

A unit of volume that is used for measuring quantities of agricultural produce, such as grains.

Consumption

The use of goods and services by households or individuals, encompassing necessities and luxury items.

Bushel

A unit of volume that is used mainly for agricultural products, such as grains and fruits, equivalent to approximately 36.4 liters in the United States.

Consumption

The use of goods and services by households or individuals, constituting one of the key concepts in economics.