If the nominal interest rate is 13 percent and the anticipated rate of inflation is 8 percent,the real interest rate is
A)13 percent.
B)21 percent.
C)5 percent.
D)-5 percent.

Name: If the nominal interest rate is 13 percent and the anticipated rate of inflation is 8 percent,the real interest rate is A)13 percent. B)21 percent. C)5 percent. D)-5 percent.
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Question

Quizplus · Accepted Answer

Real interest rate = Nominal interest rate - Inflation rate
Real interest rate = 13% - 8% = 5%

If the Nominal Interest Rate Is 13 Percent and the Anticipated