The Nominal Interest Rate Is 5 Percent and the Inflation

question 183

Multiple Choice

The nominal interest rate is 5 percent and the inflation rate is 2 percent.What is the real interest rate?

• A)7 percent
• B)2.5 percent
• C)10 percent
• D)3 percent

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Definitions:

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A rare genetic disorder in which the body cannot break down the amino acid phenylalanine, potentially leading to brain damage if untreated.

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