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If the rate of inflation is 8% and the interest rate, expressed in the ordinary( nominal) way in current dollars, is 12 %, what is

If the rate of inflation is 8% and the interest rate, expressed in the ordinary( nominal) way in current dollars, is 12 %, what is the real interest rate?

a. -4 %

b. 4 %

c. 20%

d. Approximately 72%

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