If the nominal interest rate is 6 percent and the rate of inflation is 2 percent,then the real interest rate is
A)-4 percent.
B)3 percent.
C)4 percent.
D)8 percent.

Name: If the nominal interest rate is 6 percent and the rate of inflation is 2 percent,then the real interest rate is A)-4 percent. B)3 percent. C)4 percent. D)8 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: 6% - 2% = 4%.

If the Nominal Interest Rate Is 6 Percent and the Rate