If the nominal interest rate is 8 percent and the current inflation rate is 3 percent, approximately what is the real interest rate?
A) 8 percent
B) 5 percent
C) 11 percent
D) 3 percent

Name: If the nominal interest rate is 8 percent and the current inflation rate is 3 percent, approximately what is the real interest rate? A) 8 percent B) 5 percent C) 11 percent D) 3 percent
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Question

Quizplus · Accepted Answer

Real interest rate = nominal interest rate - inflation rate
Real interest rate = 8% - 3%
Real interest rate = 5%

If the Nominal Interest Rate Is 8 Percent and the Current