If the real interest rate is 8 percent and there is a deflation rate of 4 percent,what is the nominal interest rate?

Name: If the real interest rate is 8 percent and there is a deflation rate of 4 percent,what is the nominal interest rate?
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Question

Quizplus · Accepted Answer

The nominal interest rate is calculated by adding the real interest rate to the deflation rate. Here, 8% (real interest rate) + (-4%) (deflation rate) = 4% nominal interest rate.

If the Real Interest Rate Is 8 Percent and There