If the inflation rate is 2 percent and the real interest rate is 6 percent, what is the nominal interest rate?
A) 3 percent
B) 4 percent
C) 6 percent
D) 8 percent

Name: If the inflation rate is 2 percent and the real interest rate is 6 percent, what is the nominal interest rate? A) 3 percent B) 4 percent C) 6 percent D) 8 percent
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Nominal interest rate = Real interest rate + Inflation rate
Nominal interest rate = 6% + 2% = 8%

If the Inflation Rate Is 2 Percent and the Real