Item$8$

$5$

points

eBookPrintReferencesCheck my workCheck My Work button is now enabled$2$Item $8$

If you are promised a nominal return of $12\%$ on a $1-$year investment, and you expect the rate of inflation to be $3\%,$ what real rate do you expect to earn?

Multiple Choice

$5\mathrm{.}48\%$

$8\mathrm{.}74\%$

$9\mathrm{.}00\%$

$12\mathrm{.}00\%$