Answered: If the nominal interest rate is 10…

If the nominal interest rate is 10 percent and the inflation rate is 4 percent, then the real interest rate is a. 14 percent. b. 6 percent. c. 2.5 percent. d. .4 percent.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 6WNG

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Question

If the nominal interest rate is 10 percent and the inflation rate is 4 percent, then the real interest rate is

a.	14 percent.

b.	6 percent.

c.	2.5 percent.

d.	.4 percent.

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