If the nominal interest rate is 6 percent and the rate of inflation is 2 percent, what is the real interest rate?
A)12 percent
B)10 percent
C)8 percent
D)4 percent

Name: If the nominal interest rate is 6 percent and the rate of inflation is 2 percent, what is the real interest rate? A)12 percent B)10 percent C)8 percent D)4 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