The nominal interest rate is 4.5 percent and the inflation rate is 0.9 percent. What is the real interest rate?
A)5.4 percent
B)5 percent
C)4.1 percent
D)3.6 percent

Name: The nominal interest rate is 4.5 percent and the inflation rate is 0.9 percent. What is the real interest rate? A)5.4 percent B)5 percent C)4.1 percent D)3.6 percent
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Quizplus · Accepted Answer

The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate: 4.5% - 0.9% = 3.6%.

The Nominal Interest Rate Is 4