You deposit $2,000 in a savings account, and a year later, you have $2,100. Meanwhile, the CPI

Question:

You deposit $2,000 in a savings account, and a year later, you have $2,100. Meanwhile, the CPI rises from 200 to 204. In this case, the nominal interest rate is _____ percent, and the real interest rate is _____ percent.

a. 1; 5
b. 3; 5
c. 5; 1
d. 5; 3

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

Question Posted: