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To Convert the Nominal Interest Rate to the Real Interest

Question 208

Multiple Choice

To convert the nominal interest rate to the real interest rate,we


A) divide the nominal interest rate by the inflation rate.
B) multiply the nominal interest rate by the inflation rate.
C) subtract the inflation rate from the nominal interest rate.
D) add the inflation rate to the nominal interest rate.
E) subtract the nominal interest rate from the inflation rate and then multiply by 100.

Correct Answer:

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