If the nominal interest rate is 0.6 percent and the rate of inflation is 2.9 percent in a given year,then what is the corresponding real rate of return?
A)3.5 percent
B)2.3 percent
C)-3.5 percent
D)None of the above.

Question

Quizplus · Accepted Answer

The real rate of return is calculated using the formula: real rate = nominal rate - inflation rate. Therefore, 0.6% - 2.9% = -2.3%. None of the provided options match this calculation.

If the Nominal Interest Rate Is 0