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    Issues in Economics Today
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    Exam 7: Interest Rates and Present Value
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    If the Inflation Rate Is 2% and the Nominal Interest
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If the Inflation Rate Is 2% and the Nominal Interest

Question 13

Question 13

Multiple Choice

If the inflation rate is 2% and the nominal interest rate is 1%, then the real interest rate is around


A) -1%.
B) 1%.
C) 2%.
D) 3%.

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