If the real interest rate is 7.5% and the rate of inflation is 3%, what is the nominal interest rate?
A) 4.50%
B) 4.57%
C) 10.50%
D) 10.73%

Name: If the real interest rate is 7.5% and the rate of inflation is 3%, what is the nominal interest rate? A) 4.50% B) 4.57% C) 10.50% D) 10.73%
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Question

Quizplus · Accepted Answer

The nominal interest rate is the sum of the real interest rate and the rate of inflation. So, 7.5% + 3% = 10.5%.

If the Real Interest Rate Is 7