If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?
A)-9.5%
B)-3.5%
C)1.5%
D)3.5%
E)9.5%

Name: If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest? A)-9.5% B)-3.5% C)1.5% D)3.5% E)9.5%
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Question

Quizplus · Accepted Answer

Real rate of interest = Nominal rate of interest - Inflation rate
= 6.5% - 3.0%
= 3.5%

If the Nominal Rate of Interest Is 6