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Which of the answers below is the correct answer to the following question; Suppose the real rate of interest is 2%, and the inflation rate
Which of the answers below is the correct answer to the following question; Suppose the real rate of interest is 2%, and the inflation rate is 4%, so that the nominal interest rate is about 6%. If the expected inflation rate rises to 5%, the nominal interest rate should climb to roughly what percent?
6%
7%
10%
4%
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