Which of the following combinations of nominal interest rates and inflation implies a real interest rate of 7 percent?
A) a nominal interest rate of 5 percent and an inflation rate of 4 percent.
B) a nominal interest rate of 4 percent and an inflation rate of 3 percent.
C) a nominal interest rate of 8 percent and an inflation rate of 1 percent.
D) a nominal interest rate of 14 percent and an inflation rate of 2 percent.
Correct Answer:
Verified
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A)those
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