Table 24-16

The following table shows the value of the Consumer Price Index and the nominal interest rate for 2013-2015.

-Refer to Table 24-16. What was the real interest rate in 2014?
A)-1.2%
B)0.9%
C)4.1%
D)6.2%

Question

​Table 24-16
​
The following table shows the value of the Consumer Price Index and the nominal interest rate for 2013-2015.
​  ​
-Refer to Table 24-16. What was the real interest rate in 2014?​
A)​-1.2% 
B)​0.9% 
C)​4.1% 
D)​6.2%

Quizplus · Accepted Answer

The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate. The correct choice is based on the data provided in Table 24-16, which indicates that the real interest rate in 2014 was 0.9%.

​Table 24-16 ​

Table 24-16