If the inflation rate is 10 percent and the real interest rate is 12 percent, the nominal interest rate is
A)2 percent.
B)zero percent.
C)10 percent.
D)22 percent.

Name: If the inflation rate is 10 percent and the real interest rate is 12 percent, the nominal interest rate is A)2 percent. B)zero percent. C)10 percent. D)22 percent.
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Question

Quizplus · Accepted Answer

The nominal interest rate is the sum of the real interest rate and the inflation rate, so 12% + 10% = 22%.

If the Inflation Rate Is 10 Percent and the Real