If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is
A)18 percent.
B)24 percent.
C)12 percent.
D)6 percent.

Question

Quizplus · Accepted Answer

The inflation rate can be calculated using the formula: nominal interest rate = real interest rate + inflation rate. Therefore, 18% = 6% + inflation rate, which means the inflation rate is 12%.

If the Nominal Interest Rate Is 18 Percent and the Real