If the nominal interest rate is 9 percent and the real interest rate is 4 percent,what is the inflation rate?
A) 3 percent
B) 5 percent
C) 8 percent
D) 11 percent

Question

Quizplus · Accepted Answer

The inflation rate can be calculated as the difference between the nominal interest rate and the real interest rate. 
Inflation Rate = Nominal Interest Rate - Real Interest Rate
In this case, 
Inflation Rate = 9% - 4% 
Inflation Rate = 5% 
Therefore, option B) 5 percent is the correct answer.

If the Nominal Interest Rate Is 9 Percent and the Real