Suppose that the real interest rate is 2.1% and the nominal interest rate is 5.4%. The inflation rate is _____%.
A) 7.5
B) 3.3
C) -3.3
D) 2.1

Question

Quizplus · Accepted Answer

The inflation rate can be found by subtracting the real interest rate from the nominal interest rate. 
Nominal interest rate - Real interest rate = Inflation rate 
5.4% - 2.1% = 3.3% 
Therefore, the inflation rate is 3.3%.

Suppose That the Real Interest Rate Is 2