Answered: If the nominal interest rate is 5…

If the nominal interest rate is 5 percent and the real interest rate is 7 percent, then the inflation rate is a. 12 percent. b. 2 percent. Oc.0.4 percent. HO d.-2 percent.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 22CTQ: Inflation rates, like most statistics, are imperfect measures. Can you identify some ways that the...

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If the nominal interest rate is 5 percent and the real interest rate is 7 percent, then the inflation rate is
a. 12 percent.
b. 2 percent.
c. 0.4 percent.
O d.-2 percent.
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