The nominal interest rate is 3 percent and the inflation rate is 2 percent. What is the real interest rate?
A. 6 percent.
B. 5 percent.
C. 1 percent.
D. 3/2 percent.
Answer:C
The nominal interest rate is 3 percent and the inflation rate is 2 percent. What is the real interest rate?
A. 6 percent.
 B. 5 percent.
 C. 1 percent.
 D. 3/2 percent.
