If the nominal interest rate is 15 percent and the inflation rate is 5 percent,then what is the real interest rate?
A)10 percent
B)20 percent
C)3 percent
D)5 percent

Name: If the nominal interest rate is 15 percent and the inflation rate is 5 percent,then what is the real interest rate? A)10 percent B)20 percent C)3 percent D)5 percent
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Question

Quizplus · Accepted Answer

The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate. Therefore, 15% - 5% = 10%.

If the Nominal Interest Rate Is 15 Percent and the Inflation