If the nominal interest rate is 7.5 and the expected, Ask an Expert

Economics

If the nominal interest rate is 7.5% and the expected inflation rate is 4%, what is the real rate of interest?

a) Less than 3.5%

b) Exactly 3.5%

c) Between 3.5% and 3.7%

d) Over 3.7% but less than 11.5%

e) Exactly 11.5%

f) More than 11.5%

g) The real rate of interest cannot be determined from the information provided

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M969322

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