Which of the following statements is (are) TRUE?
A) If the real interest rate is 3% and the nominal rate is 5%, the inflation rate is 8%.
B) If the nominal interest rate is 5% and inflation is 2.5%, the real interest rate is 2.5%.
C) If the nominal interest rate is 5% and inflation is 4%, the real interest rate is 9%.
D) If the real interest rate is 3% and inflation is 5%, the nominal interest rate is 2%.
Correct Answer:
Verified
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