If the annual real rate of interest is 2.5% and the expected inflation rate is 3.4%,the nominal rate of interest would be approximately
A)4.9%.
B)0.9%.
C)-0.9%.
D)7%.
E)none of the above.

Question

Quizplus · Accepted Answer

The Answer of If the annual real rate of interest is 2.5% and the expected inflation rate is 3.4%,the nominal rate of interest would be approximately
A)4.9%.
B)0.9%.
C)-0.9%.
D)7%.
E)none of the above.

If the Annual Real Rate of Interest Is 2