If the nominal interest rate is 9 percent and the real interest rate is 3 percent,then the inflation rate is
A)-6 percent.
B)3 percent.
C)6 percent.
D)12 percent.

Question

Quizplus · Accepted Answer

The inflation rate can be found by subtracting the real interest rate from the nominal interest rate.

Inflation rate = Nominal interest rate - Real interest rate 
= 9% - 3% 
= 6%

Therefore, the correct answer is C) 6 percent.

If the Nominal Interest Rate Is 9 Percent and the Real