The nominal interest rate is 8 percent and the inflation rate is 3 percent. What is...

Question

Question

The nominal interest rate is 8 percent and the inflation rate is 3 percent. What is the real interest rate?

Answer 1

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Answer #1

Real interest rate = Nominal rate - Real interest rate

Real Interest = 8 - 3

Real interest rate is 5%. the answer is "D".

Answer 2

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