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If the Nominal Interest Rate Is 4 Percent and the Inflation

Question 93

Multiple Choice
If the nominal interest rate is 4 percent and the inflation rate is 7 percent, then the real interest rate equals

If the nominal interest rate is 4 percent and the inflation rate is 7 percent, then the real interest rate equals


A) -3 percent.
B) +3 percent.
C) -4 percent.
D) -7 percent.
E) +11 percent.

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