If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is
A)2%
B)3%
C)6%
D)9%

Name: If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is A)2% B)3% C)6% D)9%
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Question

If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is
A)​2%
B)​3%
C)​6%
D)​9%

Quizplus · Accepted Answer

The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate. In this case, the real interest rate would be 3% (6% - 3% = 3%). Therefore, the best choice is B.

If the Nominal Interest Rate Is 6% and the Inflation