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If a bank posts a nominal interest rate of seven per cent per year and the inflation rate is four per cent per year, then
If a bank posts a nominal interest rate of seven per cent per year and the inflation rate is four per cent per year, then the real interest rate is:
a. | four per cent | |
b. | three per cent | |
c. | minus three per cent | |
d. | minus four per cent |
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