If the real rate of return is 2 percent and the inflation rate is 2 percent, the nominal interest rate is:
A) 4 percent.
B) 2 percent.
C) −2 percent.
D) −4 percent.

Name: If the real rate of return is 2 percent and the inflation rate is 2 percent, the nominal interest rate is: A) 4 percent. B) 2 percent. C) −2 percent. D) −4 percent.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

Nominal interest rate = Real interest rate + Inflation rate 
Nominal interest rate = 2% + 2% 
Nominal interest rate = 4%

If the Real Rate of Return Is 2 Percent and the Inflation