If the real interest rate is 4 percent and the inflation rate is 9 percent, then the nominal interest rate equals:
A)4 percent.
B)9 percent.
C)13 percent.
D)36 percent.

Name: If the real interest rate is 4 percent and the inflation rate is 9 percent, then the nominal interest rate equals: A)4 percent. B)9 percent. C)13 percent. D)36 percent.
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Question

If the real interest rate is 4 percent and the inflation rate is 9 percent, then the nominal interest rate equals:
A)4 percent.
B)9 percent.
C)13 percent.
D)36 percent.

Quizplus · Accepted Answer

The real interest rate = the nominal interest rate - the inflation rate. So to find the nominal interest rate, add the real interest rate to the inflation rate.

If the Real Interest Rate Is 4 Percent and the Inflation