Question
If an individual has $10,000 in a savings account paying 3%, and the inflation rate is 2%, the nominal interest rate is: A) 5%, and
If an individual has $10,000 in a savings account paying 3%, and the inflation rate is 2%, the nominal interest rate is:
A) 5%, and the real rate is 7%
B) 3% and the real rate is 1%
C) 5%
D) 5% and the real rate is 3%
E) 3% and the real rate is 5%
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
