If the nominal interest rate is 7 per cent and the inflation rate is 3 per cent, then the real interest rate is
A) -4 per cent.
B) 3 per cent.
C) 4 per cent.
D) 10 per cent.
E) 21 per cent.

Name: If the nominal interest rate is 7 per cent and the inflation rate is 3 per cent, then the real interest rate is A) -4 per cent. B) 3 per cent. C) 4 per cent. D) 10 per cent. E) 21 per cent.
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Question

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Real interest rate = nominal interest rate - inflation rate
Real interest rate = 7% - 3%
Real interest rate = 4%

If the Nominal Interest Rate Is 7 Per Cent and the Inflation