In the country of Hyrkania, the CPI in 2018 was 140 and the CPI in 2019 was 154. Jake, a resident of Hyrkania, borrowed money in 2018 and repaid the loan in 2019. If the nominal interest rate on the loan was 12 percent, what was the real interest rate?
A) 2 percent
B) 8 percent
C) 12 percent
D) 16 percent
Correct Answer:
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