Suppose people expect inflation to be 3 percent during the next several years. When the real interest rate is 5 percent, the money, or nominal interest rate, will be
A) 1 percent.
B) 4 percent.
C) 7 percent.
D) 8 percent.

Question

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The Answer of Suppose people expect inflation to be 3 percent during the next several years. When the real interest rate is 5 percent, the money, or nominal interest rate, will be
A) 1 percent.
B) 4 percent.
C) 7 percent.
D) 8 percent.

Suppose People Expect Inflation to Be 3 Percent During the Next