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Econ211.W04 spring Test:FINAL EXAM 7 of 60 (58 complete) 1 pt must be n an economy is 4 percent and the real intonest rale in
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Answer #1

Ans.- (C)

Real interest rate = nominal interest rate - inflation

2= 4 - inflation

So, inflation = 2% .

If you have any doubt feel free to ask.

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